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 North Stockyard is to drill 8 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:

Week of April 21st

                                     
TOFTE 1 PAD     Lateral length     Objective     Status     IP rate BOPD     Rate BOPD     Cum to Date BO
Billabong 2-13-14HBK     6,147 ft.     Bakken     Recovery of drill pipe planned for June 2014     NA     NA     NA
Sail and Anchor 4-13-14HBK     6,375 ft.     Bakken     Shut-in     1,323     NA     28,315
Blackdog 3-13-14     8,383 ft.     Bakken     Flowing     1,995     875     28,244
                       
                                     
TOFTE 2 PAD     Lateral length     Objective     Status     IP rate BOPD     Rate BOPD     Cum to Date BO
Tooheys 4-15-14HBK     6,740 ft.     Bakken     Shut-in     1,078     NA     40,083
Coopers 2-15-14HBK     6,360 ft.     Bakken     Flowing     556     291     26,381
Little Creature 3-15-14H     7,578 ft.     Bakken     Shut-in     501     NA     40,858
 
                                     
MATILDA BAY PAD     Lateral length     Objective     Status     IP rate BOPD     Rate BOPD     Cum to Date BO
Matilda Bay 2-15-H     4,215 ft.     Bakken     Frac May 9th     NA     NA     NA
Matilda Bay 1-15-H     4,215 ft.     Bakken     Frac May 9th     NA     NA     NA
 
                                     
TF NORTH PAD     Lateral length     Objective     Status     IP rate BOPD     Rate BOPD     Cum to Date BO
Bootleg 4-14-15TFH     7,211 ft.     Three Forks     Drilling in progress     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     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

Production is down on the Sail and Anchor well because it has been shut-in to allow a workover rig to clean out the well and install an electric submersible pump for artificial lift. Production has also been shut down on the Blackdog 3-13-14 well as of April 27th, which shares the Tofte 1 Pad, to permit this workover operation to proceed.

Production is also down on the Tooheys 4-15-14HBK and Little Creature 3-15-14H wells due to production facility issues. Production is likely to be down for a week until these operational problems are fixed.

The Bootleg 4-14-15TFH well has been drilled to surface casing depth of 2,418 feet. Casing will be run in the hole and then the rig will be skidded to commence drilling on the Bootleg 5-14-15TFH well.

Hydraulic fracture stimulation operations are planned to start on both Matilda Bay wells on May 9th.

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%
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 2,837 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 ADSs. Accordingly, based on the NYSE MKT closing price of US$0.36 per ADS on April 28th, 2014 the Company has a current market capitalization of approximately US$53.63 million (the options have been valued at an exchange rate of 0.9290). Correspondingly, based on the ASX closing price of A$0.019 for ordinary shares and a closing price of A$0.013 for the 2017 options, on April 28th, 2014, the Company has a current market capitalization of approximately A$56.66 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