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I know that there are many here who are skeptical and you have a right to be. I will tell you one thing. There is a company being built here and there are some very capable people involved here. People who have built multi billion dollar energy company's before. Superior now has been involved in 8 new horizontal wells to this point. At least 8 more are being offered now and will soon be ready for drilling. The SEC / FINRA stuff will soon be submitted. We will be back to trading soon and then the bigger projects can be rolled out. When have you ever saw a small oil company get the support that this one gets from industry giants? You know there has to be a reason for it!
Here is were connections come in to play. Dan Lloyd Jr. and SE both have a ton of industry connections. Superior has no shortage of land that they can farm in on from one of the Bigger Players. It was stated some time ago that Superior has over 1,250,000 acres that they can "pick and choose" to farm into. He is how it works as I know it. Superior finds a geological "hot spot". Devon Energy own the leases, but Superior can "farm in". Superior raises the money through private investors to purchase the land and participate in the well, just like me. When the money is raised from us, Superior tells Devon how many acres it wants. Devon then sells the leases to Superior and Superior resells to us fellow investors. This gives us the right to participate in the well or any well that Devon will be drilling in that section. If I choose not to participate in a future well, the leases go back to Superior free of charge and they will own them. So, Superior wins and wins and wins. This is the same business plan that Chesapeake Energy and Devon Energy was built on.
We will have 12 Sections secured very shortly with at least 16 wells per section. ( some more than that ) 12 x 16 = 192 new wells that Superior can participate in. The pace of drilling is controlled by the operator. However, if Superior has the funds raised in advance Superior can propose wells and force the operator to drill the wells. (That is how I understand it to be.)
SE once said that he would like to see the company have exposure to 1,500 to 2,000 wells for a future drilling inventory, just in Oklahoma. At the time I wasn't sure how the boys at Superior could pull this off, but I can see how this could be very possible now without a lot of effort.
I also don't know what they might have in other places like the Marcellus or Utica. I strongly believe it's a matter of time before we hear of some big developments there.
It appears to me that the plan is to participate in as many new sections as possible to gain exposure to as many wells as possible. This also gives Superior a free carry and an acreage foot print for free.. SE always told me that it's not about how much acreage a company has, but how many good wells can you punch on it.
I haven't heard anything about it for some time. It seems to me the strategy is to be in the "core" areas with all the big dogs and keep riding their coat tails. This acreage that Superior targets has between 4 and 7 separate stacked drillable formations.
Glad to have you aboard petro!
I agree oil is going to go much higher over the long term. Superior now has participated in 8 horizontal wells and 4 more set to drill in the next 60 days or so. Hammer down boys! We are well north of .10 per share that's for sure. If my simple math is correct, that is 144 future new wells that Superior has exposure to. Seems as if we are quietly building a drilling inventory here at no cost to the company! This is fun watching and being a part of.
You are very correct about that. SE co-founded a pure play Marcellus / Utica shale company. It has always been in the back of my mind that Superior would eventually end up with some operations there. Time will tell!
I laugh to myself every time that I catch wind of a deal or another funded well that SE and Dan have put together. Remember all of those who said that this would never happen! Well folks, it's happening!!!
Yes, it is my understanding that Superior is going to be able to participate in much of Sundance's acreage package. I hope people are watching what is shaping up here.
Just got it!!
I agree!! I have a lot of confidence in our leadership!
I was told that meetings regarding re-listing were taking place today and that everything is moving forward as planned and there will be news out shortly. That is all that I know at this time.
I just got word that Superior is participating with Chesapeake in Alfalfa County. The offering has closed out for that section. GREAT NEWS!
Yes, it is!
It's a good section to get into. Dan is really putting the projects together in rapid fire order.
Yes, I did. I'm getting in on that deal.
YES! That is exactly what I'm saying! There are some really strong plays out there. The Bakken, Marcellus, Utica to name a few. The well costs are double of those in Oklahoma. The operators here are now increasing the total recoverable EUR's in the Mississippi Lime / Woodford Shale plays AND reducing cost's while they do it. That equals money in the bank!
Superior is setting in a pretty nice position at the moment. IMO
Interesting article: http://nblo.gs/12ejO0
There are areas in Oklahoma where the wells are half the cost to drill as a Bakken well and the EUR's are now comparable. This falls in line with SE's the good prospects will get drilled and the bad won't theory. Continental Resources is cutting their Bakken drilling and increasing the Oklahoma drilling budget.
People take note. There is an oil company being built here!
I always turn any correspondence from Devon around the same day, then I place follow up calls and emails to my account manager in a few days to be sure of receipt and processing. These big companies tend to need a shove from time to time.
Yes, I would check with your account representative at Devon Energy. They will be able to advise you. I have found that Devon sometimes is a bit slow in processing their paperwork.
Atta Boy!! This is going to be fun watching this develop!
No problem!
I just got word that Superior has an investment open with Chesapeake Energy in Alfalfa County, Oklahoma. I'm getting in!
The address to send your information to is : info@SuperiorOilandGas.com
I'll buy them!
Keep them! You should call SE!
I was told by another Gushers Club member that the plan is a 1 billion dollar market cap in seven to ten years.
Some sections Superior might control half or more of the Section.
Well sort of. It depends on the size of the land position. It vary's section to section.
Just for your information, here are the results of Superiors wells on a 24hr test and the IP rate:
1) 12-18N-3W 1MH 779 Boe / 627 bbl of oil Estimated Sales to date (conservative estimated) $5,825,355 1st year of production.
2) 13-18N-3W 1MH 753 Boe / 548 bbl of oil Estimated Sales to date (conservative estimated) $4,749,484 1st year of production.
3) 14-18N-3W 1MH 706 Boe / 306 bbl of oil Estimated Sales to date (conservate estimated) $4,158,260 1st year of production
4) 23-18N-3W 1MH 489 Boe / 456 bbl of oil Estimated Sales to date
(conservative estimaded, came online in late January of 2014) $2,631,056
I do not have data on Section 24 as of now, but could get it. I'm not invested in that well, so it was of no interest to me.
Here is a great presentation from MidStates Petroleum about the Mississippi Lime and the play in general. It comes complete with decline curves, etc.
file:///C:/Users/Owner/Downloads/Wells%20Fargo%20Presentation%2012-10-14%20(2).pdf
The complaints that I have is that Devon's well cost's are about 25 to 30% higher than anyone else. Devon also seems to be a bit unorganized at times and that has caused us all delays in getting checks. It finally seems as if we are getting to the bottom of things with them.
I feel bad for JRT because he had the luck of investing in Section 23. That section is the lowest performer to date. I get his frustration, but I will say he will be fine over the long haul. What effects production is formation pressure, natural fracturing, permeability and porosity of the formation. The total EUR will be recovered, just not as quickly. Just think of it like a bottle of soda that is shook up and one that is not.
It depends on the well and oil prices. I say anywhere between 10 and 24 months for a complete return on the investment on average. Some faster, some slower. The first year is the best. These wells will produce about 17% of the original recoverable Boe in place the first year. The rest will be recovered over the next 8 to 10 years at a declining rate. Figure 380,000 Boe per well avg. recoverable.
That was a great post by SE! I have only been a stockholder for three years, but have tried to understand the company history. It seems as if the only problem has been lack of good management! The leadership here always lacked the ability to make good decisions, make a good plan and execute that plan. I had worked my entire life as a petroleum engineer, mostly for Texaco, Amoco and Chevron. I retired after 42 yrs in the industry. I always felt Superior was in the right place at the right time, with the right industry connections. They lacked the leadership, vision and ability to execute anything with success. In the past they have looked like a ship of fools! They have always in the past made all the wrong decisions at precisely the right time, with all the wrong people.
I have some faith in Dan. He seems like a decent guy. He was ask and accepted a difficult role in a company that had nothing going for it. I think he has done a serviceable job to this point. I think he is inexperienced, but can grow into the job. I do think he needs to grow a pair and start thinking and talking for himself. He needs to develop into the leader that we so desperately need.
I'm still somewhat miffed about the stock getting de-listed. That never,ever should have happened. They could have issued 10 million shares and had it covered. It destroyed credibility of the company at a time when they needed it most. That is why I question the judgement of the securities attorney for the company. Who in there right mind would allow this to happen? It seems as if we are on the road to getting that fixed. I just hope the guy that allowed this nightmare to happen isn't allowed to be making any business decisions. IMO he is not capable!
I agree there has been a lot of positive developments over the past year. I hope the violent roller coaster ride is over and Dan can get this company running smoothly. Investor communication is a step in the right direction for sure! Superior needs to restore credibility.
I've gotten checks on 12,13 and 23. I don't know why JRT hasn't gotten any. The only well that I'm waiting on from the initial 4 is section 14. Maybe he hasn't sent his paperwork in yet.
Very well put! I have to agree on all points that you just made! Dan has stepped up to the plate in many ways and is meeting the challenges head on. He is showing me some serious leadership qualities that we need!
I have told through the GUSHERS that the financials were completed except for the addition of this last quarter.
Any way you slice it. When have you ever heard of a company that was de-listed spend the money on a mailing so they could communicate with stockholders and tell them what their plans are? To me this is a major event in the history of Superior.
Fly.. you are correct! I had not given it a thought about the possible new well investors generated from a re-listing.