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Strategies & Market Trends : Calls and Puts for Income -- Ignore unavailable to you. Want to Upgrade?

To: Robohogs who wrote (5200)	6/23/2012 2:23:26 PM
From: Jim P.	1 Recommendation Respond to of 5891

SD funded for this year and some of next. They can cut capex by shifting more drilling to the Kansas side of Miss play where the drilling carry with Repsol cuts cash cost significantly. Days on site drilling ANC completion have recently taken a large drop. Not sure how this will play out. SD was experimenting with completions and must have made a significant improvement. Biggest risk to plan oil prices followed by liquidity. I expect that any E and P that can get through this soft patch coming will rewarded. Maybe get stuck in a position for up to 18 months if things get rotten. Not my expectation. $80 oil is still a money maker for SD. $100 great. There is a big issue on NGL pricing currently and looks like it will impact some wet drilling economics soon. Expectations are this will last a while but I am not so sure. Response to natural gas futures seem to be impacting drilling finally. SD has exposure to natural gas but current contract in the Miss play is Keep Whole. This is being negotiated and likely will change to POP. Should be a meaningful change. As far as $70 oil for an extended period. Not sure how low SD would go.