Oddly enough SSN acreage has shrinked from initially 180.000 or 174.00 50% owned acres (90.000 or 87.000 net acres) to 40.600 net acres. What happened to the 'lost' acres???
Corrizo just bought 50.000 Niobrare acres in the Denver Cheyenne basin. Price $25 million or $500 pr acre.
May be some weasels have waited for SSN bancrupcy, which was very close until the refinancing with a severe dilution.
The GENE well appears to have saved SSN and changed the game, and thus their Niobrara negotiating position. Surely these Goshen County Niobrara acres are worth a lot, and certainly more than $1000 an acre. Remember than SSN has Niobrara mud logs and other data from their from their London Flats 1 well (but remember the oil did not origin from the Niobrara). Their partner (Mountain Energy) has a lot of drilling data from previous drilling years back, and has approvals for new wells in Goshen.
Would be buyers are absolutely speculative, and could be anybody. In addition to EOG and CHK, I would mention Carrizo, Quicksilver, Mariner Energy and Anadarko who all are cumulating acres in the Denver-Cheyenne Niobrara play, but any dark horse could be on the horizon - what about Zavanna.
DVN is not on my list, SSN got the 3D data from Baxter Shale from Devon, but not the data from DVN's horizontal Baxter shale well, and the relation between DVN and SSN appears very frozen. Questar are also very tight-lipped recently when it comes to the Baxter shale
SSN Price at posting:
4.0¢ Sentiment: Buy Disclosure: Held
