February 17, 2015 - 7:12 PM EST
Print Email Article Font Down Font Up
Samson Oil & Gas Advisory

Samson Oil & Gas Limited (ASX: SSN; NYSE MKT: SSN):


Samson’s net monthly production for the December 2014 quarter and for January 2015 was as follows:

    October   November   December   January
OIL, BO   6,591   17,619   18,906   15,221
GAS, MCF   11,861   9,363   12,102   15,384
BOE   8,567   19,180   20,923   17,785
BOEPD   285   618   675   574

January production was lower than December 2014 due to wells not on production (“ down days”). Drilling and completion operations are the main causes for the ongoing down days: the month of January had 15 more down days than December. However, since our last report Billabong 2-13-14HBK was fraced and a 24 hour I.P test produced an equivalent 1,249 barrels of oil per day and 3.05 MMscf of gas per day. A coil tubing unit has moved onto the Blackdog well where sand cleanout operations have started. The coil unit will remain at this location for clean out operations on the Billabong and Sail & Anchor wells. Bootleg 4 is currently undergoing sand cleanout;, Ironbank 6 has been fracked and is currently flowing back, and Ironbank 7 has been fracked, flowed back, and is expected to be on production this week. Bootleg 8 and Ironbank 4 and 5 have been brought on line.


Samson has the following hedges in place:

Calendar year   Volume bbls.   Floor   Ceiling
2015   16,623   $85.00   $89.85
2016   2,788   $85.00   $89.85
Calendar year   Volume bbls.   Average per month   Swap
2015   36,474   3,316   $92.46

As at February 13th, 2015 the book value of the hedge was $2.1 million as valued by Samson’s counterparty.


The infill development plan for North Stockyard consists of 8 middle Bakken wells that have been drilled and 22 Three Forks wells of which 9 have been drilled (8 in the First Bench and 1 in the Second Bench). Given the curtailment of the infill development program, there will remain an undrilled balance of 13 wells. For ease of reference, the current status of each well is set out below with separate tables for each drill pad:

TOFTE 1 PAD   Lateral length   Objective   Status   IP rate BOPD   Avg. Rate BOPD#   Cum to Date BO


  6,147 ft.   Bakken   Frack completed   1,249   NA   NA
Sail and Anchor 4-13-14HBK   6,375 ft.   Bakken   Shut in for frack program   1,323  



3-13-14 HBK

  8,383 ft.   Bakken   Shut in Rig on well   1,995   SI   109,878


  Lateral length   Objective   Status   IP rate BOPD   Avg. Rate BOPD#   Cum to Date BO


  6,740 ft.   Bakken   On production   1,078   284   77,987


  6,360 ft.   Bakken   On production   556   277   61,142
Little Creature


  7,578 ft.   Bakken   WO Coiled tubing cleanout   501   SI   72,284
MATILDA BAY PAD   Lateral length   Objective   Status   IP rate BOPD   Avg. Rate BOPD#   Cum to Date BO
Matilda Bay


  4,215 ft.   Bakken   Shut in   1,117   125   34,560
Matilda Bay


  4,215 ft.   Bakken   On Production   318   121   16,562
TF NORTH PAD   Lateral length   Objective   Status   IP rate BOPD   Avg. Rate BOPD#   Cum to Date BO


  7,211 ft.   Three Forks 1   On production   471   617   67,428


  7,495 ft.   Three Forks 1   Shut in Rig on well   NA   261   52,636


  7,466 ft.   Three Forks 1   On production   715   397   3572


  7,495 ft.   Three Forks 1   On production   528   319   18,096
TF SOUTH PAD   Lateral length   Objective   Status   IP rate BOPD   Avg. Rate BOPD#   Cum to Date BO


  6,867 ft.   Three Forks 1   Frack completed, SI   NA   NA   NA


  6,973 ft.   Three Forks 1   Frack completed, SI   NA   NA   NA


  6,771 ft.   Three Forks 2   SI   922   NA   922


  7,434 ft.   Three Forks 1   Frack completed, Flowing back   NA   NA   NA


  7,458 ft.   Three Forks 1   Frack completed, SI   NA   NA   NA


All of the 17 drilled in fill wells in North Stockyard have now been fracked and the field is being bought back on line following the completion of tubing clean out and flowback operations. Currently one workover rig, and one coiled tubing unit are active to bring the field back on production as quickly as possible.

#The Avg. Daily rate is an average of the last week’s production or the average after the well was put back into production.
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

NA: Not available
APD: Application for Permit to Drill
IP Rate: Gross first 24 hour oil rate
Current rate BOPD: Barrels of Oil per Day
Cum to Date: Cumulative gross BO

Samson’s working interest and its net revenue interest for the North Stockyard Project is set out in the following table:

Well   Working interest   Net revenue Interest
Billabong 2-13-14HBK   28.77220%   22.01073%
Sail and Anchor 4-13-14HBK   25.028509%   19.146809%
Blackdog 3-13-14H   24.863526%   19.020597%
Tooheys 4-15-14HBK   28.232033%   21.597505%
Coopers 2-15-14HBK   28.232033%   21.597505%
Little Creature 3-15-14H   27.759719%   21.236185%
Matilda Bay 2-15-H   32.972255%   25.223775%
Matilda Bay 1-15-H   32.972255%   25.223775%
Bootleg 4-14-15TFH   28.386344%   21.715553%
Bootleg 5-14-15TFH   28.386344%   21.715553%
Ironbank 4-14-13TFH   26.746521%   20.461089%
Ironbank 7-14-13TFH   26.746521%   20.461089%
Bootleg 6-14-15TFH   28.386344%   21.715553%
Bootleg 7-14-15TFH   28.386330%   21.715553%
Bootleg 8-14-15H   28.386330%   21.715553%
Ironbank 6-14-13TFH   26.746521%   20.461089%
Ironbank 7-14-13TFH   26.746521%   20.461089%


Gladys 1-20H (SSN 23%)

The Gladys 1-20 H well has been drilled by Continental Resources to a total depth of 19,994 feet. The well is a 1,280 acre lateral (approximately 10,000 feet) in the middle member of the Bakken Formation.

    Lateral length   Objective   Status   IP rate BOPD   Avg. Rate BOPD#   Cum to Date BO
Gladys 1-20H   9,558 ft.   Middle Bakken   On production   717   712   51,017


An electrical submersible pump has been installed in the Gladys well and the production performance has been excellent. Since the pump was installed the average daily rate has been 678 BOPD which compares to the average rate during the prior week, before the well completed its free flow period, of 186 BOPD.

Samson is presenting to delegates at Enercom’s “The Oil & Services Conference” being held in San Francisco. Samson’s presentation is scheduled for Wednesday February 18th at 1330 hours PST, USA or Thursday February 19th at 0830 hours EST, Australia. The presentation will be available on Samson’s website: http://www.samsonoilandgas.com/IRM/content/default.aspx

The presentation is being webcast and the link is as follows: http://www.oilandgas360.com/tosc-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 20 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 141.85 million DSs. Accordingly, based on the NYSE MKT closing price of US$0.24 per ADS on February 17th, 2014, the Company has a current market capitalization of approximately US$34.4 million (the options have been valued at an exchange rate of 0.7799). Correspondingly, based on the ASXclosing price of A$0.015 for ordinary shares and a closing price of A$0.002 for the 2017 options, on February 17th, 2014, the Company has a current market capitalization of approximately A$43.0 million.



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.

Samson Oil & Gas Limited
Terry Barr, 303-296-3994 (US office)
970-389-5047 (US cell)

Source: Business Wire (February 17, 2015 - 7:12 PM EST)

News by QuoteMedia

Legal Notice