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:
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February
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March
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April
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May
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June
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July
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OIL, BO
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22,590
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26,893
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29,821
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31,385
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27,089
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21,417
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GAS, MCF
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21,694
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26,555
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19,064
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18,309
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19,808
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26,286
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BOE
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26,206
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31,408
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32,998
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34,437
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30,391
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25,798
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BOEPD
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845
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1,013
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1,064
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1,111
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1,013
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832
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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
COMMENTARY
Production from North Stockyard was lower for July compared to the
previous month due to downtime associated with the installation of new
processing facilities in the field. These facilities were required in
order to comply with recently promulgated North Dakota state safety
regulations which have mandated a lower gas content in crude in order to
decrease the volatility of the crude oil whilst being transported by
rail.
HEDGE BOOK
Samson’s hedge portfolio is as follows:
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Calendar year
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Volume bbls.
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Floor
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Ceiling
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2016
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2,788
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$85.00
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$89.85
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Calendar year
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Volume bbls.
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Sub Floor
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Floor
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Ceiling
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2015
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73,500
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$45.00
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$32.50
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70.25
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2016
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36,600
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$67.50
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$82.50
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-
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2016
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27,450
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$40.00
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$55.00
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$80.00
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As of August 14th, 2015 the book value of the hedge portfolio was
approximately $650,000, as valued by Samson’s counterparty.
BLUFF #1-11
The flow test of the Permian aged “9,500 sand” continued during the
month, and as the well head pressure has declined the well is now been
set to flow at a consistent rate of 8 MMcfpd.
The well was shut in for a pressure build-up last weekend, and this data
will be used to observe the movement of the fluid boundary which was
seen on previous build-up pressure tests.
The well has produced a total of 1.2 BCF of gas (mainly nitrogen) to
date and an analysis of the build-up data will enable the reservoir
model to be updated as to when or if the water or oil leg can be
expected to be seen at the well.
SPIRIT OF AMERICA US34 #2-29
The workover and perforation of the Dakota Formation in the SOA 2-29
well in Goshen County, WY has been completed. The tubing and stuck fish
were successfully pulled from the wellbore, but after perforating and
swabbing, only fresh water was recovered.
SPIRIT OF AMERICA US34 #1-29
While the workover on the SOA 2-29 well was occurring, one of the valves
on the wellhead was changed out on the SOA 1-29 well for safety reasons.
The two wells are approximately 50’ apart from each other. During the
course of changing out the valve, the well was opened up and produced
gas and oil over a period of 45 minutes before the pressure bled off.
After the well was shut-in for a short period of time, it quickly built
up to a pressure of 800psi on the wellhead. As a result, Samson plans to
conduct a more thorough flow test through a separator this week to
determine if this well can produce oil in economic quantities. This well
is perforated within the Cretaceous Muddy Formation as was previously
fracture stimulated after recording gas and oil shows and a creditable
log response. The flow back from this frack did not recover any
hydrocarbons, and it is now thought that the flow back was curtailed too
early. The 3D seismic data demonstrates a possible stratigraphically
trapped channel sand. The Muddy Formation is also known as the J-Sand
which is the most prolific producing zone within the D-J Basin.
BADGER #1
Samson has been notified by the operator of the Badger Prospect that the
first well is expected to spud mid to late September due to rig
availability. 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.
PRESENTATION AT ENERCOM, DENVER
Samson is presenting to delegates attending Enercom’s “The Oil & Gas
Conference” on Wednesday, August 19th, 2015 at 0835 hours
Denver or August 18th, 2015 at 0035 hours Sydney. The
presentation will be made available on Samson’s website and the webcast
is available at:
http://www.oilandgas360.com/togc-webcast/ssn/
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$0.67 per ADS on
August 17th, 2015, the Company has a current market
capitalization of approximately US$9.6 million (the options have been
valued at an exchange rate of 0.7375). Correspondingly, based on the ASX
closing price of A$0.005 for ordinary shares and a closing price of
A$0.002 for the 2017 options, on August 17th, 2015, the
Company has a current market capitalization of approximately A$14.4
million.
SAMSON OIL & GAS LIMITED
TERRY BARR
Managing Director
Statements made in this press release that are not historical facts may
be forward-looking statements, including but not limited to statements
using words like “may”, “believe”, “expect”, “anticipate”, “should” or
“will.” Actual results may differ materially from those projected in any
forward-looking statement. There are a number of important factors that
could cause actual results to differ materially from those anticipated
or estimated by any forward-looking information, including uncertainties
inherent in estimating the methods, timing and results of exploration
activities. A description of the risks and uncertainties that are
generally attendant to Samson and its industry, as well as other factors
that could affect Samson’s financial results, are included in the
Company's annual report on Form 10-K, filed with the U.S. Securities and
Exchange Commission on September 15, 2014, which is available at www.sec.gov/edgar/searchedgar/webusers.htm.
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