Samson Oil & Gas Limited (ASX: SSN; NYSE MKT: SSN):
TOTAL COMPANY PRODUCTION
Samson’s net monthly production, for the last six months, is as follows;
BO: Barrels of oil
BOE: Barrels of oil equivalent (gas converted at its heating value)
BOPD: Barrels of oil per day
MCF: Thousand cubic feet
BOEPD: Barrels of oil equivalent per day
Production from North Stockyard was down for June compared to the previous month due to increased line pressure in the regional gas gathering system. This additional pressure was a result of the gas gathering system installing additional compression which will allow for additional gas volumes to be transported. This additional line pressure required a number of wells within the field to be restricted such that gas flaring was within acceptable regulatory allowances. This problem is expected to be rectified with the installation of higher pressure rated, process facility equipment.
The hedged portfolio is as follows:
|Calendar year||Volume bbls.||Floor||Ceiling|
As of July 10th, 2015 the book value of the hedge was approximately $419,000, valued by Samson’s counterparty.
The flow test of the Permian aged “9,500 sand” continued during the month with the well flowing consistently at around 12.8 MMcf/D of gas at a flowing pressure of 950 pounds per square inch gauge, on a 46/64ths choke. Minor water production has been measured and is condensed water rather than formation water.
The well will be shut in for a pressure build up, later this week, and this data will be used to observe the movement of the fluid boundary which was seen on the initial build up pressure test.
The well has produced a total of 780 MMcf of gas and an analysis of the build-up data will enable the reservoir model to be updated as to when the water or oil leg can be expected to be seen at the well.
SPIRIT OF AMERICA US34 #2-29
A workover rig has moved on the S.O.A. 2-29 well which is located in Goshen County Wyoming, to abandon the deeper portion of the hole and come up hole to perforate the Dakota Formation from 8054 to 8064 feet. The mudlog recorded an increase in gas upon drilling through this interval along with shows of oil. After the Dakota Formation has been perforated, the well will be flowed or swabbed to determine the presence of hydrocarbons.
Samson has been notified by the operator of the Badger Prospect that the first well will spud mid to late August. The Badger #1 well is located in Section 29 of Township 157N, Range 81W in Ward County, North Dakota. Samson has a 25% working interest in the well which will target the Wayne zone of the Mississippian Mission Canyon Formation at an expected depth of 4,800 feet. The prospect is a 4-way structural closure that has the potential for up to 6 wells with a prospect potential (if hydrocarbons are present) of up to 2 MMBO recoverable.
Samson’s Ordinary Shares are traded on the Australian Securities Exchange under the symbol “SSN”. Samson’s American Depository Shares (ADSs) are traded on the New York Stock Exchange MKT under the symbol “SSN”. Each ADS represents 200 fully paid Ordinary Shares of Samson. Samson has a total of 2,837 million ordinary shares issued and outstanding (including 230 million options exercisable at AUD 3.8 cents), which would be the equivalent of 14.185 million ADSs. Accordingly, based on the NYSE MKT closing price of US$0.95 per ADS on July 13th, 2015, the Company has a current market capitalization of approximately US$13.5 million (the options have been valued at an exchange rate of 0.7762). Correspondingly, based on the ASX closing price of A$0.007 for ordinary shares and a closing price of A$0.002 for the 2017 options, on July 13th, 2015, the Company has a current market capitalization of approximately A$20.1 million.