Energy Prospectus

From RBC Capital Markets on Jan. 8

"SN's late December production rate of 20,000 Boepd is impressive, and indicates that SN's production is running ~10% above our
prior estimates. We are increasing our 2014-2015 production estimates by 6-10%. We also expect a big catalysts at Sante North and Five Mile Creek in the near future, which could derisk up to 35,000 net acres and could be conservatively worth $6/share."

My updated forecast model for SN has been posted under the Watch List Tab.

From the same RBC report.

"Big Catalyst Upcoming At Sante North, Five Mile Creek Drilling Starting.
SN indicated that the Sante North well has now been drilled, with
completion scheduled for mid-January. The IP rate will likely be available
in February. Sante North is critical as it is in the middle of a ~25,000 net
acre block with basically no industry activity, and the market gives SN little
credit for this acreage. The first Sante well had mechanical issues, but SN
indicated that it did not have any major issues with the new well. SN is
also currently starting to drill its first well at Five Mile Creek, with results
likely available by the end of 1Q14. The well could derisk another 10,000
net acres. We think if both these areas are successful, it could add around
$6/share to our NAV and add another ~300 net locations to inventory
(3-4 years of drilling). We think that SN currently trades at a discounted
multiple (3.8x 2015E EBITDA) due to inventory concerns, so success could
cause the stock to re-rate."