Current SSN Stock Info

Newly acquired Foreman Butte field is new focus

Based on recent headlines, an investor could believe that the only oil and gas opportunities are found in unconventional basins. However, conventional opportunities still exist, and some companies are taking advantage of these availabilities. Samson Oil & Gas (ticker: SSN) is currently focusing on just such a conventional asset, the Foreman Butte field.

Acquired in April, the Foreman Butte field is a low porosity, low permeability carbonate field in North Dakota and Montana. In addition to the 51,000 net acres Samson received, the acquisition included numerous wells. Most of these wells were not efficiently operated, a situation Samson is currently working to rectify. Many wells have sub-performing pumps or improperly sized pumping units. Samson is currently identifying these wells and developing programs to fix their problems. Samson also has identified several wells with behind-pipe pay zones as potential recompletion targets.

North Dakota asset sale generates liquidity

To generate liquidity for these Foreman Butte improvements Samson sold its interest in the North Dakota North Stockyard field in August. This raised $15 million in cash that the company has used reduce its debt and fund Foreman Butte improvements. These improvements could be seen in Samson’s most recent quarterly filings.

Samson’s Foreman Butte production increased by 10% in the most recent quarter, despite winter conditions hampering activity. The company’s overall production increased by a similar percentage in the quarter.

Infill drilling is also planned for future development of the Foreman Butte field. Samson reported a plan for drilling a sidetracks from an existing zero value well. This would take advantage of the existing wellbore, allowing the resultant lateral well to be very cost-effective. According to the company, this process would cost $750,000, while a comparable new well would cost $2.8 million.

Samson also reported reserves in December, showing a decrease of 14%. According to the company, this is primarily due to production roll-off and the temporary shut in of several producing wells. All of the shut in wells have been brought back on production since reserves were reported.

Samson Oil & Gas Limited: Conventional Production Success

Source: Samson Oil & Gas

Samson Oil & Gas Limited: Conventional Production Success

Source: Samson Oil & Gas

EnerCom Dallas presenter: SSN

Samson Oil & Gas will be presenting its story at the Tower Club Downtown Dallas on Thursday, March 2, as part of EnerCom Dallas, an investor conference which is modeled after EnerCom’s The Oil & Gas Conference® in Denver.

The Dallas conference is designed to offer investment professionals a unique opportunity to listen to a wide variety of oil and gas company senior management teams update investors on their operational and financial strategies and learn how the leading independent energy companies are building value in 2017.

The forum offers healthy dialogue and informal networking opportunities for attendees.

To sign up for EnerCom Dallas and hear Samson, request one-on-one meeting with management, or to find out more information about presenting companies and industry experts speaking at EnerCom Dallas, click here to visit the conference website.

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