GREY:SCSZF - Post by User
Post by
ProfitHunteron Jun 19, 2011 11:07am
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Post# 18734934
SCS Footnotes
SCS Footnotes
The basis of the operational updated was the latest presentation on the website.
Three rigs going to be deployed once it dries up. Currently a rig is just sitting due to the high levels of mositure on the land. There will some delays in completions as a result of the high demand for fracing companies. It is expected to be a record year for the number of wells punched in the greater area.
Some sizzle will be created as they drill a BHL well on their 100% W.I. land, adjacent to the Coral Hill 12-20 which tested great than 1000 boe/d (q3) refer to page 23 of presentation. Well selection locations are dynamic . A combinaton of JV earning wells plus development wells on assocaited lands plus drilling six wells on their 100% W.I. lands.
Good explanation for the JV. Derisk the land and not lose it for lack of drilling Their 15% of the JV costs are 850k /well. I am uncertain if this is all in. The 10 million bump in credit lines goes a long way in covering this.
With respect to thier 9200 100%W.I. lands, anything is for sale at the right price. All the land in the area is now tied up.
The Pekisko formation see page 13 is 37 km long to which SCS has the biggest chunk and it sits at 1500meters with the Bearver Hills formation sitting at at 2500 meters.
Capital budget will be adjusted in accordance with success or failure of the drill bit.
Profit Hunter