Well I've come to appreciate I'm talking to big players here that know what their doing, especially that Superior will own 7% in 16 wells by year end. That's the equivalent of raking all the profits of 1.12 wells, which is pretty darn good for shareholders...
But I have to be honest, I'm still scratching my head a little on how this works, maybe because I'm Polish and dense. Perhaps I need to put my thoughts in an ordered list.
1. Superior has the knowledge to look at specific parcels of land Devon (and others I guess), hold leases in. They actually own nothing, but know of the sweet areas of the land by virtue of their connections.
2. Once Devon (and others) get ready to drill, they prefer land men to come in and capture the land. These land men take over the leases, or buy the land outright? Getting the owners to sell to the oil driller friendly land men probably is a desireable development for the oil driller and well operator.
3. Since the land men get into good deals (perhaps a little dirty as they have all the key info, but completely legal and legit) they are in a good position from the get go. They then go out and raise capital to drill the well.
4. So everyone is in a sweet spot so to speak. The land men (SOG) have a good land purchase and their mere 7% stake covers that and then some. The investors get into a good well and stand to make a profit. The oil driller is in a better position working directly with an oil friendly land owner and have disolved themselves of the initial costs. So it's WIN / WIN / WIN
So I guess Dan Lloyd Jr. and SE are these kinds of oil land men and have the connections and experience to be the middle men, the land men I'm calling them.
Am I getting warmer?
Very interested. Would make for an interesting story...
Well, if this trades again, I can see it generating some excitement. Especially if everything about the new SOG is properly advertised...
Interesting stuff...
And purely my spin and humble conjecture. PMS&HC, lol..
