Samson Oil & Gas Limited (ASX: SSN; NYSE MKT: SSN):
TOTAL COMPANY PRODUCTION
Samson Oil and Gas Limited’s (“Samson” or the “Company”) net monthly
production, for the last six months, is as follows;
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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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August
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OIL, BO
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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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20,659
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GAS, MCF
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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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32,288
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BOE
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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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26,040
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BOEPD
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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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840
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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 maintained at around 2,500 barrels
per day (gross field production) in line with the Operators nominated
pipeline capacity. It is expected that this restriction will continue
through September. All wells in the field are on line with the exception
of Blackdog which underwent a short (3 day) shut in to install a
downhole pump. This well has recovered a cumulative 185,326 barrels of
oil and has free flowed for 330 days. The well’s performance has been
linked to the 8 million pound of proppant placed during the fracture
stimulation of this well bore.
HEDGE BOOK
The Company’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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36,600
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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 September 13th, 2015 the book value of the hedge was
approximately $650,000 as valued by Samson’s counterparty.
BLUFF #1-11
The flow test of the Permian aged “9,500 sand” was discontinued after
the last pressure build-up test because it was concluded that the
observed fluid contact would not reach the well bore in the short term.
The flow test has neither confirmed nor discounted the presence of a
water or oil leg to the Bluff 1-11 accumulation. This can now only be
determined by drilling a down dip appraisal well, which had previously
been rejected by the joint venture partners in response to the current
oil price environment.
Samson is however investigating whether it might be feasible to use the
remaining 4 Bcf of nitrogen as an immiscible flood to the oil saturated
Niobrara Formation. The limiting variable in this is likely to be the
relatively low permeability exhibited in this reservoir.
SPIRIT OF AMERICA US34 #1-29
The SOA 1 well has been flow tested, but a sustained rate has yet to be
established. The well has flowed fair amounts of gas (at rates of around
275 Mcf/d) and has recovered limited (several barrels) of 56.7 API oil.
The well is perforated within the Cretaceous Muddy Formation, which was
previously fracture stimulated after recording gas and oil shows and a
creditable log response.
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.
The well is equipped with a plunger lift system and will be swabbed
later this week after modifications are made to the completion design.
BADGER #1
Samson has been notified by the operator of the Badger Prospect that the
first well is expected to spud 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.
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
prospectus and prospectus supplement for its recent Rights Offering as
well as the Company's report to the U.S. Securities and Exchange
Commission on Form 10-K, which are available at www.sec.gov/edgar/searchedgar/webusers.htm.
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