the CHOICE of which well to drill .... this is what will drive the returns. With 2 million acres in the Mississippi Play there are more potential wells than can be drilled. Debt is manageable and if they sell the GULF business and pay off the remaining debt, they have no debt. Alfaffa, Grant, Woods Counties in Oklahoma are GREAT plays & SD has penty of acreage in these areas. OK, so SD ends up selling some of its acreage position at less than its cost - who cares. Cash is cash. SD is currently selling for less than $5 a share and they finally have a good management team in place.
LOTS OF SHORTS OUT THERE MAY BE BITING THE BULLET WHEN THEY REALIZE THE WAGON THEY WERE FOLLOWING IS ON A SERIOUS COLLISION COURSE.
SD has zero chance of drilling a monster well in Oklahoma. The only thing that can save sd is a HUGE INCREASE in oil and ng prices. Do yourself a favor and read the reports instead of a stupid mb.
Canaccord Genuity tells the truth about sd
"Mississippian economic return
meaningfully inferior to other major resource plays
Based on actual capital spending/production performance, the
of the Mississippian play is comparable to the Bakken/Three Forks, though
Mississippian production is ~35% oil while Bakken/
Three Forks output is ~90%
oil. Accordingly, while the Bakken/Three Forks generates a 10% unleveraged
return at ~$100 NYMEX, the Mississippian play requires a ~$150 NYMEX oil
price. Two main factors result in the Mississippian play’s lesser economic
) a material
ly lower oil composition and (2
) a more elongated
production profile as wells commence at a materially lower average rate."