Current SSN Stock Info

Samson Oil & Gas lowers differential from $8.00 per barrel to $5.50-$6.50

Samson Oil & Gas (ticker: SSN) announced its quarterly results for the first quarter of 2017 indicating that the company is seeing stronger pricing for its Williston Basin production. Samson reported that production averaged 722 BOEPD during the quarter ended March 31, 2017. According to the company’s press release, SSN improved its Williston Basin differentials from $8.00 per barrel 12 months ago to a current estimated differential between $5.50 and $6.50 per barrel.

The company reported cash on hand of $2.1 million at the end of the quarter with cash receipts from March oil and gas sales of $897,000. Combined, the company has current liquidity of roughly $3 million. Samson also drew down an additional $1 million under its credit facility in February of this year, according to the company.

Samson extends its lease option period in Utah and tests the Mississippian Madison Formation

As part of the company’s quarterly filing, Samson included an operational update which included news that the company extended its lease option period for an additional year with the Utah School and Institutional Trust Lands Administration (SITLA). Under the agreement, SSN has the option to lease 8,080 net acres located in Grand and San Juan Counties, Utah for $75 per acre.

Samson also included an update on the company’s Foreman Butte Project where it has an 87% operated average working interest. The company said two new horizontal laterals are slated to be drilled out of the company’s Maris 1-16H wellbore in late spring or early summer. The first will test the Ratcliffe Formation of the Mississippian Madison Group while the second will test the Mission Canyon Formation, also in the Mississippian Madison Group.

“The lateral in the Ratcliffe Formation will help define the pressure depletion radius from the existing producing wellbores which will ultimately determine the number of PUD’s we can drill in this reservoir,” Samson said in its release.

“Third-party pressure modeling of the Ratcliffe reservoir shows that relatively high reservoir pressure resides approximately 500’ away from the Maris 1-16 surface location. It is estimated that this new lateral could produce at around 300 BOPD if the third-party pressure modeling proves to be correct. The second lateral in the Mission Canyon Formation will test an undeveloped reservoir that could prove up a new oil field with the potential for many additional well locations.”

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