Samson Oil & Gas Operational Advisory

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

TOTAL COMPANY PRODUCTION

Samson net production for 2014 is as follows:

                     
    JAN   FEB   MARCH   APRIL   MAY
OIL, BO   5,767   12,180   11,154   15,775   16,654
GAS, MCF   16,323   17,016   13,067   11,345   10,720
BOE   8,487   15,016   13,332   17,666   18,440
BOEPD   273   536   430   589   595
         

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:

                         
TOFTE 1 PAD   Lateral length   Objective   Status   IP rate BOPD   Avg. Rate BOPD#   Cum to Date BO
Billabong

2-13-14HBK

  6,147 ft.   Bakken   Work Over Completed   NA   NA   NA
Sail and Anchor 4-13-14HBK   6,375 ft.   Bakken   Flowing   1,323   267   44,974
Blackdog

3-13-14 HBK

  8,383 ft.   Bakken   Flowing   1,995   753   75,389
           
                         
TOFTE 2 PAD   Lateral length   Objective   Status   IP rate BOPD   Avg. Rate BOPD#   Cum to Date BO
Tooheys

4-15-14HBK

  6,740 ft.   Bakken   Pumping   1,078   194   50,979
Coopers

2-15-14HBK

  6,360 ft.   Bakken   Pumping   556   307   37,304
Little Creature

3-15-14HBK

  7,578 ft.   Bakken   Pumping   501   396   59,205
 
                         
MATILDA BAY PAD   Lateral length   Objective   Status   IP rate BOPD   Avg. Rate BOPD#   Cum to Date BO
Matilda Bay

2-15-HBK

  4,215 ft.   Bakken   Flowing   1117   510   12,714
Matilda Bay

1-15-HBK

  4,215 ft.   Bakken   Waiting for a workover   318   0   1,010
 
                         
TF NORTH PAD   Lateral length   Objective   Status   IP rate BOPD   Avg. Rate BOPD#   Cum to Date BO
Bootleg

4-14-15TFH

  7,211 ft.   Three Forks   Drilling completed   NA   NA   NA
Bootleg

5-14-15TFH

  7,495 ft.   Three Forks   Drilling completed   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   Avg. 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   Currently Drilling   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
 
#The Avg. Daily rate is an average of the last week’s production or the average after the well was put back into production.
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 work over rig has been released on the Billabong well and the wellbore is now free of drill pipe and the running tool assembly. A portion of Samson’s interest in the well has been offered to Slawson in accordance with our previous sale agreement, whereby Slawson can acquire 50% of Samson’s equity in the well after a successful workover. Samson’s equity in the well has increased to 57% (from 50%) because of one party’s non consent to the ongoing workover expense. Slawson’s purchase decision has yet to be communicated to Samson; however the well bore is now ready for pre fracture treatment preparations.

Over the weekend Frontier 24 moved to the Three Forks South pad where it will batch drill two Three Forks wells (Bootleg 6 and 7) before returning to the Three Forks North pad to drill the Ironbank 4-14-13TFH the Ironbank 5-14-13 TFH.

Currently Frontier Rig 24 is running 9 5/8 inch surface casing on the Bootleg 7-14-15TFH well at a depth of 2,400 feet. The rig will then skid to Bootleg 6-14-15TFH well to drill the surface hole.

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

         
Well   Working interest   Net revenue Interest
Billabong 2-13-14HBK   57.544394%   44.02146%
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.

Bluff 1-11

Over the weekend the open hole logging operations recorded log data from intermediate casing at 7,300 feet (MD) down to 8,850 feet (MD). Having reviewed the open hole logs recorded yesterday, a cement plug is preparing to be placed in the lower part of the open hole from 8,850 to 8,350 feet. This section of the hole does not exhibit any reservoir quality rocks.

However an initial evaluation of the logs suggests that the Permian target from 7738 feet to 7756 feet has excellent porosity development of around 19% which is encouraging, however the zone is accompanied by low resistivity which suggests that the zone is water saturated. Prior to abandoning this zone, independent log analysis is being performed, to confirm this preliminary conclusion.

In any event, as previously reported, log pay was determined in the both the Dakota and Morrison Formations, in the intermediate hole. Using a 60% water saturation as a cut-off to determine oil productive zones, 23.5 feet of log pay is indicated in the Dakota (from 6,393 to 6,485 feet) and 3.5 feet in the Morrison (from 6,605 to 6,625 fee). These log pay zones have been cased and a completion testing program will be designed to determine the productivity of the zones using a completion rig.

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$0.45 per ADS on June 23rd, 2014 the Company has a current market capitalization of approximately US$66.43 million (the options have been valued at an exchange rate of 0.9439). Correspondingly, based on the ASX closing price of A$0.022 for ordinary shares and a closing price of A$0.012 for the 2017 options, on June 23rd, 2014, the Company has a current market capitalization of approximately A$65.17 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)
970-389-5047 (US cell)

Contacts

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