HAL currently have a 25% WI in the project, If they decide...

HAL currently have a 25% WI in the project, If they decide against the 2nd appraisal, SSN interest would increase to 43.75% within the project of 11227 acres.

Remember HAL and Mountain Energy had an offer to JV SSN with SOA and decided against it.

Also the valuation of the leases in Hawk Springs when HAL came into the project were at $3150 per acre to $4150 with CNOOC and $5000 per acre with MRO. Mind you this oily progression of the price was before any well was drilled in or around the mediate area of the project.

Now the leases for CHK are up for sale with no results, so it will be interesting what the new valuation will be and if HAL see this as a positive or negative.

Also section 29 is the best of the best location as per 3 D Seismic data, so HAL would have to make a calculated decision based on Defenders results, the section they are drilling in and decide if the research done would improve flow rates on another well location.

If I was a betting man, and I am I would tend to think they won’t take up the 2nd option or even a further stake in the project . ( Very happy to be proven wrong)

The fact HAL didn’t want a stake in SOA and TB has the verticals at $1Billion which is triple that of the Niobrara horizontals adds further doubt in my mind.

If HAL don’t take up the 2nd option it will be disappointing as it is a free ride for SSN and it may take some time before a 2nd horizontal will be drilled in Hawk Springs.

Cheers Matsim