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   255   46,762  
Blackdog

3-13-14 HBK

  8,383 ft.   Bakken   Flowing   1,995   708   80,345  
           
                         
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   221   52,523  
Coopers

2-15-14HBK

  6,360 ft.   Bakken   Pumping   556   267   39,170  
Little Creature

3-15-14HBK

  7,578 ft.   Bakken   Pumping   501   369   61,786  
 
                         
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   Shut in for offset frack   1117   281   14,679  
Matilda Bay

1-15-HBK

  4,215 ft.   Bakken   Waiting for 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   Follows BL 7   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

Slawson has exercised its option to acquire 50% of Samson’s interest in the Billabong well following the successful conclusion to the drill pipe recovery workover.

Frontier Rig 24 has drilled to kick off point of 10,813 feet and is tripping out of the hole to pick up the curve drilling assembly on the Bootleg 7-14-15TFH well. The rig will then skid to Bootleg 6-14-15TFH well to drill the surface and intermediate holes.

The company’s net production for June will be included in next week’s advisory.

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   28.77220%   22.01073%
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.

HAWK SPRINGS PROJECT, GOSHEN COUNTY, WYOMING
Bluff 1-11

Drilling operations have been completed in the Bluff 1-11 well. Preliminary planning for two cased hole tests has been completed and will be presented to the working interest owners for their consideration.

RAINBOW PROJECT, WILLIAMS COUNTY, NORTH DAKOTA
Gladys 1-20H

Continental Resources has proposed to drill the Gladys 1-20H, a 1,280 acre lateral (approximately 10,000 feet) in the middle Bakken. Samson has a 23% working interest in this well. This well will be the first in the Rainbow project which is expected to maintain Samson’s production growth following the completion of the North Stockyard infill program towards the end of 2014. Rainbow will currently support a drilling program of up to 14 wells, comprised of 8 wells in the middle Bakken and 6 in the Three Forks. Continental commenced spudding operations of the Gladys 1-20H with a spudder rig on June 27, 2014, and will proceed with the remaining drilling operations on or around July 9, 2014.

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$0.44 per ADS on June 30th, 2014, the Company has a current market capitalization of approximately US$65.01 million (the options have been valued at an exchange rate of 0.9420). Correspondingly, based on the ASX closing price of A$0.021 for ordinary shares and a closing price of A$0.012 for the 2017 options, on June 30th, 2014, the Company has a current market capitalization of approximately A$62.34 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)

Sharing

Contacts

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