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Steve Zachritz
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Steve Zachritz, "Zman", is an investor/trader who specializes in the energy sector. He has managed small cap growth portfolios, been an energy banker, and a sell side exploration and production analyst (Prudential and Jefferies) in his 20 years in the financial markets. His daily... More
My company:
Zman's Energy Brain, LLC
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Zman's Energy Brain
  • SSN - Buying The Undeserved Dip 3 comments
    Mar 31, 2010 9:28 AM | about stocks: SSN

    SSN ~ Not Planning To Stay Long But This Drop Seemed Like Overkill, Especially With A Potential Game Changer Well A Week From Results. 

    Reason For The Fall Yesterday:

    • The well that they were being punished for yesterday (which ended with the stock down 16% yesterday at $0.46) was a dry hole on a 1 Bcfe potential Yegua, gas well in Grimes County, Texas, which took about a week to drill.
    • I think falling 20+% on the failure of this 1 well vs the company’s current reserves of 18 Bcfe is an over reaction.

    The Potential Catalyst:

    • SSN is within about a week of having production data on their second Bakken well, the Gene #1-22H (30.6% working interest).
    • You’ll note it was on the catalyst list as their first Bakken well but technically they deepened an earlier well to the Bakken so this is the second, although I think it has a longer lateral (at 5,500 feet) and definitely has more stages (at 16) than the first well.
    • This is in Williams County, North Dakota, in the east side of what BEXP calls Rough Rider. This well is not far from where BEXP drilled their highest IP Bakken well to date, the State 36-1H, with an IP of 3,807 BOEpd.
    • If this one works they have acreage for an additional 5 wells, not a lot, but it would be significant to their reserve base and I’m not planning on being here very long.


    Disclosure: I own SSN common
    Themes: Bakken Stocks: SSN
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This post has 3 comments:

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  •  
    Thanks for the heads up Zman. I wish you would post here more.
    18 Apr 2010, 09:38 PM Reply Like
  •  
    Come see us at zmansenergybrain.com. We post there 6 days a week.
    5 Jun 2010, 12:50 PM Reply Like
  •  
    We just added a new post on SSN
    We added more OAS early this week in advance of its first Street coverage next week.
    14 Jul 2010, 05:15 PM Reply Like
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