Samson Oil & Gas Operational Advisory

DENVER & PERTH, Australia--()--Samson Oil & Gas Limited (ASX: SSN; NYSE MKT: SSN):

NORTH STOCKYARD PROJECT, WILLIAMS COUNTY, NORTH DAKOTA

The infill development plan for Samson’s North Stockyard project is to drill 10 middle Bakken wells and 8 Three Forks 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   Current rate BOPD   Cum to Date BO
Billabong 2-13-14HBK   6,147 ft.   Bakken   Recovery of drill pipe planned for April 2014   NA   NA   NA
Sail and Anchor 4-13-14HBK   6,375 ft.   Bakken   Shut in for the Blackdog frack   1,323   NA   22,424
Blackdog 3-13-14   8,383 ft.   Bakken   Frack completed   NA   NA   NA
           
                         
TOFTE 2 PAD   Lateral length   Objective   Status   IP rate BOPD   Current rate BOPD   Cum to Date BO
Tooheys 4-15-14HBK   6,740 ft.   Bakken   Flowing   1,078   244   28,985
Coopers 2-15-14HBK   6,360 ft.   Bakken   Flowing   556   342   15,281
Little Creature 3-15-14H   7,578 ft.   Bakken   Shut in for the Blackdog frack   501   NA   23,240
 
                         
RENNERFELDT PAD   Lateral length   Objective   Status   IP rate BOPD   Current rate BOPD   Cum to Date BO
Rennerfeldt 2-13-H   3,708 ft.   Bakken   Completed ready for frack   NA   NA   NA
Rennerfeldt 1-13-H   3,591 ft.   Bakken   Completed ready for frack   NA   NA   NA
 
                         
MATILDA BAY PAD   Lateral length   Objective   Status   IP rate BOPD   Current rate BOPD   Cum to Date BO
Matilda Bay 2-15-H   4,215 ft.   Bakken   Set surface casing at 2,381 ft.   NA   NA   NA
Matilda Bay 1-15-H   4,215 ft.   Bakken   Set surface casing at 2,364 ft., current depth 11,020 feet.   NA   NA   NA
 
                         
TF NORTH PAD   Lateral length   Objective   Status   IP rate BOPD   Current rate BOPD   Cum to Date BO
Bootleg 4-14-15TFH   7,211 ft.   Three Forks   APD submitted   NA   NA   NA
Bootleg 5-14-15TFH   7,495 ft.   Three Forks   APD submitted   NA   NA   NA
Ironbank 4-14-13TFH   7,466 ft.   Three Forks   APD submitted   NA   NA   NA
Ironbank 5-14-13TFH   7,495 ft.   Three Forks   APD in prep   NA   NA   NA
 
                         
TF SOUTH PAD   Lateral length   Objective   Status   IP rate BOPD   Current rate BOPD   Cum to Date BO
Bootleg 6-14-15TFH   6,867 ft.   Three Forks   APD submitted   NA   NA   NA
Bootleg 7-14-15TFH   6,973 ft.   Three Forks   APD submitted   NA   NA   NA
Ironbank 6-14-13TFH   7,434 ft.   Three Forks   APD in prep   NA   NA   NA
Ironbank 7-14-13TFH   7,458 ft.   Three Forks   APD in prep   NA   NA   NA
 

PRODUCTION

Samson net production for 2014 is as follows:

                   
      JANUARY 2014     FEBRUARY 2014     MARCH 2014
OIL, BO     5,767     12,180     NA
GAS, MCF     16,323     17,016     NA
BOE     8,487     15,016     NA
BOEPD     273     536     NA
           
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
 

COMMENTARY

The fracture stimulation of the Blackdog 3-13-14H well commenced on March 9th, and was completed March 21st. This frack was the largest undertaken in Samson’s North Stockyard project to date and pumped 8.5 million pounds of proppant in 38 stages. This represents a proppant concentration of around 1,000 pounds per foot of proppant, which is in line with current industry practice of the use of larger volumes of proppant to deliver larger ultimate reserves. The well is currently shut in and will be flowed back later this week.

Sail and Anchor is shut in during the Blackdog frack and continues to await a coil tubing clean out in conjunction with Blackdog.

Frontier 24 is drilling the two Matilda Bay wells in batch mode and has set surface casing on both wells, with Matilda Bay #1 running a 7 inch casing string. Following the cement of this casing string the rig will skid to Matilda Bay #2 to drill the curve and set the 7 inch production casing.

The Rennerfelt #1 and 2 wells are ready for the frack crew, which is now expected to arrive April 27th.

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

             
Well     Working interest     Net revenue Interest
Billabong 2-13-14HBK     50.052000%     38.289780%
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%
Rennerfeldt 2-13-H     27.179868%     20.792599%
Rennerfeldt 1-13-H     27.179868%     20.792599%
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*     28.386344%     21.715553%
Ironbank 6-14-13TFH*     26.746521%     20.461089%
Ironbank 7-14-13TFH*     26.746521%     20.461089%
       

* Indicates wells that have yet to be elected by Samson and are therefore subject to change.

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 2,547 million ordinary shares issued and outstanding (including 230 million options exercisable at AUD 3.8 cents), which would be the equivalent of 127.35 million ADSs. Accordingly, based on the NYSE MKT closing price of US$0.48 per ADS on March 24th, 2014 the Company has a current market capitalization of approximately US$63.63 million (the options have been valued at an exchange rate of 0.9081). Correspondingly, based on the ASX closing price of A$0.025 for ordinary shares and a closing price of A$0.013 for the 2017 options, on March 24th, 2014, the Company has a current market capitalization of approximately A$66.43 million.

 

SAMSON OIL & GAS LIMITED

 

TERRY BARR

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.

Contacts

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

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Contacts

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