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 28th

                         
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   Flowing   1,323   595   32,200
Blackdog 3-13-14   8,383 ft.   Bakken   Flowing   1,995   861   34,400
           
                         
TOFTE 2 PAD   Lateral length   Objective   Status   IP rate BOPD   Rate BOPD   Cum to Date BO
Tooheys 4-15-14HBK   6,740 ft.   Bakken   Pumping   1,078   367   42,000
Coopers 2-15-14HBK   6,360 ft.   Bakken   Flowing   556   359   29,000
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   Frack May 16th   NA   NA   NA
Matilda Bay 1-15-H   4,215 ft.   Bakken   Frack May 16th   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   Drilling in progress   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

The Blackdog 3-13-14 well continues to outperform, and for the 34 days that it has been on stream it has produced on average in excess of 1,000 BOPD.

The ESP install in Sail and Anchor well was delayed after it began flowing during cleanout operations. The tubing and a packer have been reinstalled, and the well has been returned back onto production.

Rod pumps are in the process of being installed on Little Creature and Tooheys wells.

The Bootleg 4-14-15TFH well has been drilled to surface casing depth of 2,418 feet. 9-5/8 inch casing was run and cemented. The rig was then skidded to the Bootleg 5-14-15TFH well, which is currently drilling vertical hole at a depth of 6,944 feet.

Hydraulic fracture stimulation operations are tentatively planned to start on both Matilda Bay wells on May 16th.

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$0.33 per ADS on May 3rd, 2014 the Company has a current market capitalization of approximately US$48.09 million (the options have been valued at an exchange rate of 0.9269). Correspondingly, based on the ASX closing price of A$0.018 for ordinary shares and a closing price of A$0.006 for the 2017 options, on May 3rd, 2014, the Company has a current market capitalization of approximately A$52.4 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