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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (42330)	4/20/2011 12:12:35 AM
From: E_K_S	Read Replies (1) \| Respond to of 78595

Hi Madharry - Their first measures (for at least one of their wells) post fracking will be released some time late this week or early next week. Remember that these well flow rates are not static and actually decay by as much as 50% over the first 18 months of the well's life. The initial flow rates (of the test wells) do provide a snap shop as to the success of the acreage for future wells and how profitable a potential production field could be. Also, to maintain high flow rates over the life of the well, they usually limit the initial flow during the test period. The street usually looks at the production figures from other drillers in the area and compare these initial flow reports to value the new field. From my limited observations, the E&P stock will move higher (or lower) after the initial flow results are reported. Once the actual monthly production figures are released (in their quarterly presentations) and continue positive, I have noticed new investors begin to recognize the potential value in the company. Some chatter on the SSN Yahoo board reports that the initial flow rates are about average or even a bit lower than expected. It's all speculation as the frac plugs have not even been drilled out yet which is necessary in order to perform the flow test. SSN has many projects ongoing. The North Stockyard Oilfield is located in Williams County ND. samsonoilandgas.com.au SSN has a 31% working interest in this project. SSN believes that the [Stockyard] field will ultimately be approved for development on 320 acres, it is likely that there will be an additional four drilling locations. --------------------------------------------------------------------- Goschen County (Hawk Springs project )( samsonoilandgas.com.au ) is another one I am watching closely. This is where their Niobrara property is located. This is what they call their Hawk Springs project. Management anticipate several hundreds of barrels of oil a day when finally developed. I am also awaiting news on their developmental wells for this project and their plans for the eventual build out of the field. EKS