Dan is more of the land deal maker guy. SE is a trained Hydro-geologist and Seismologist. SE can tell you where you need to be drilling and where you need to stay away from. He also is well connected to the affluent investor, private equity groups, family offices and investment banks. SE is BIG MONEY plain and simple.
SE works directly with the CEO's of the energy company's. He does not cut deals with land men. You do not get into direct deals with Devon, Chesapeake, Newfield or Continental unless they like you. SE has in the past put together deals in the past ranging from 50 to 350 million on a regular basis. Superior is just not quite ready for that yet, but I think is getting closer.
Also the 7% you refer to is a floating figure based upon the amount of acreage owned in the section as that effects the amount of well ownership. There are a couple of wells that Superior owns a very large % of. More than the quarter section. I hope I'm explaining this clearly...
Think about this. Let's say that Superior puts together a package with Devon for 25,000 acres. 75/25.. That is 39 sections. There can be 16 wells drilled per section or 624 wells total. This could be a 8 year (78 million a year) scale able project to drill and develop 1/3 for a 1/4 deal. This would require roughly 624 million in capital by the investor group for their 1/4. These deals are done every day and we have the guys to get it done! I know I'm talking big here, but we have the guys that can and have pulled this stuff off in the past! I believe it will happen in the future! Think of the possibilities... Eve a deal a quarter of this size... Devon wins, Superior wins, the investor wins and the shareholders win.
