Crude Oil ( ) Brent Crude ( ) Natural Gas ( ) S&P 500 ( ) PHLX Oil ( )

On January 23, 2012, Samson Oil & Gas (ticker: SSN) announced a replacement pump has been installed on the Defender US 34 well, the company’s first of two potential horizontal Niobrara test wells in the company’s Hawk Springs project area. Samson is carried 100% on the Defender US 34 well and a potential second by Halliburton (ticker: HAL).

The Defender US 34 well is producing on the new pump at rates between 400 and 500 barrels of fluid per day and the oil cut has improved to 29.9% on January 22, 2012, up from 18.5% on January 18, 2012. The total recovered frac fluid is 47%.

The Defender US 34 well was drilled to test the Niobrara Oil Shale at the company’s Hawk Springs project area located in Goshen County, Wyoming.

[sam_ad id=”32″ codes=”true”]
OAG360 Comments:

Positive news for Samson as the new pump has increased fluid production from the well and importantly the oil cut continues to grow. We will watch for an update on the well’s progress in the weeks ahead. If deemed successful, Halliburton has the option to drill a second Niobrara test well at Hawk Springs. OAG360 reiterates that SSN is fully carried by HAL on the first two Niobrara horizontal wells.

Samson is one of the early pioneers in the Niobrara Oil Shale play in the DJ Basin. For reference, in September 2010, Samson closed on the sale of 24,166 acres of its leasehold prospective for the Niobrara in Goshen County, Wyoming to Chesapeake Energy Corporation (ticker: CHK) at the price of $3,150 per acre. In that sale, Samson sold approximately two-thirds of its acreage in the DJ Basin, but retained approximately 16,500 net acres in the play. One year later on January 25, 2011, Samson inked a joint venture (JV) with Halliburton covering 11,277 gross acres, 6,589 net to Samson to assess the play’s potential. Under the JV, Halliburton committed to drill and complete two test wells targeting the Niobrara shale and carry Samson through the drilling and completion stages to earn a 25% working interest in any commercially successful well in the initial farm-in area.

If the Defender US 34 well proves commercially viable, it is a step in the right direction for Samson as it works to evaluate its new Bakken leasehold position in Roosevelt County.

 


Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. The company or companies covered in this note did not review the note prior to publication.

Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.