DENVER & PERTH, Australia–(BUSINESS WIRE)–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;
| April | May | June | July | August | Sept | |||||||
| OIL, BO | 29,821 | 31,385 | 27,089 | 21,417 | 20,659 | 18,921 | ||||||
| GAS, MCF | 19,064 | 18,309 | 19,808 | 26,286 | 32,288 | 32,541 | ||||||
| BOE | 32,998 | 34,437 | 30,391 | 25,798 | 26,040 | 24,344 | ||||||
| BOEPD | 1,064 | 1,111 | 1,013 | 832 | 840 | 785 |
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 2,200 barrels of oil per day (gross field production). All wells in the field are on line with the exception of Billabong which requires a complete clean out of the lateral; sand and plug parts from the completion still remain in the lateral restricting oil flow. Bootleg 4 and 5 are on a restricted flow due to state mandated gas capture regulations and Bootleg 7 will be shut in for a short period to switch out the pump.
HEDGE BOOK
The Company’s hedge portfolio is as follows:
| Calendar year | Volume bbls. | Floor | Ceiling | |||||
| 2016 | 2,788 | $85.00 | $89.85 | |||||
| Calendar year | Volume bbls | Sub Floor | Floor | Ceiling | ||||
| 2015 | 27,600 | $45.00 | $32.50 | 70.25 | ||||
| 2016 | 36,600 | $67.50 | $82.50 | – | ||||
| 2016 | 27,450 | $40.00 | $55.00 | $80.00 |
As of October 9, 2015 the book value of the hedge was approximately $550,000 as valued by Samson’s counterparty.
SPIRIT OF AMERICA US34 #1-29
The SOA US34 #1-29 well is currently waiting on a swabbing unit to remove a full column of fluid out of the wellbore to allow the well to flow freely. The location received substantial rainfall over the last two weeks and once the location is dry, the swabbing unit will move in to swab the wellbore. After the swabbing is completed, a plunger lift system will then be used to continuously lift fluid from the wellbore.
BADGER #1
Samson has been notified by the operator of the Badger #1 well that the Capstar Rig 311 spudded the well on October 9th. Surface casing has been set and cemented to a depth of 885 feet. The present operation is drilling ahead at a depth of 1,663 feet. 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 development wells if successful..
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$0.82 per ADS on October 12th, 2015, the Company has a current market capitalization of approximately US$11.8 million (the options have been valued at an exchange rate of 0.7332). Correspondingly, based on the ASX closing price of A$0.005 for ordinary shares and a closing price of A$0.001 for the 2017 options, on October 12th, 2015, the Company has a current market capitalization of approximately A$14.4 million.
