Samson Oil & Gas Operational Advisory

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

NORTH STOCKYARD PROJECT, WILLIAMS COUNTY, NORTH DAKOTA

As previously advised the sale of the Rennerfelt #1-13H and Rennerfelt #2-13H wells has been completed providing capital to participate in the more profitable Matilda Bay wells.

The infill development plan for North Stockyard 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   Flowing   1,323   336   27,136
Blackdog 3-13-14   8,383 ft.   Bakken   Flowing   1,995   1,162   19,494
           
                         
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   378   37,256
Coopers 2-15-14HBK   6,360 ft.   Bakken   Flowing   556   305   22,694
Little Creature 3-15-14H   7,578 ft.   Bakken   Flowing   501   779   37,321
 
                         
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   Finished Drilling   NA   NA   NA
Matilda Bay 1-15-H   4,215 ft.   Bakken   Finished Drilling   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 approved   NA   NA   NA
Bootleg 5-14-15TFH   7,495 ft.   Three Forks   APD approved   NA   NA   NA
Ironbank 4-14-13TFH   7,466 ft.   Three Forks   APD approved   NA   NA   NA
Ironbank 5-14-13TFH   7,495 ft.   Three Forks   APD approved   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 approved   NA   NA   NA
Bootleg 7-14-15TFH   6,973 ft.   Three Forks   APD approved   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
 

TOTAL COMPANY PRODUCTION

Samson net production for 2014 is as follows:

                   
      JANUARY 2014     FEBRUARY 2014     MARCH 2014
OIL, BO     5,767     12,180     11,154
GAS, MCF     16,323     17,016     13,067
BOE     8,487     15,016     13,332
BOEPD     273     536     430

 

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 sale of the two Rennerfeldt wells has been completed netting Samson a total of $200,000 which will be used to help fund the remaining wells in the North Stockyard project.

Frontier rig 24 has completed drilling the Matilda Bay #1 and #2 wells. The production liner has been run in the Matilda Bay #2 well and the production liner is presently being run in the Matilda Bay #1 well. It is anticipated that these two wells will be fracture stimulated in May or June depending on equipment availability.

After drilling the Matilda Bay #1 well, Frontier rig 24 will move to the Three Forks North Pad to begin batch drilling the first of four Three Forks wells. The four Three Forks wells are the Ironbank 4-14 and 5-14 wells and the Bootleg 4-14 and 5-14 wells. These wells are all similar in design and will have lateral lengths between 7,211 and 7,405 feet long as shown in the table above. The current plan is to then move to the Three Forks South Pad to begin drilling the final four Three Forks wells.

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%

* Wells have yet to be elected by Samson and therefore are 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$0.46 per ADS on April 14th, 2014 the Company has a current market capitalization of approximately US$61.17 million (the options have been valued at an exchange rate of 0.9392). 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 April 14th, 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