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 consists of 8 middle Bakken wells that have been drilled and 22 Three Forks wells. The Three Forks wells consist of 8 First Bench Three Forks wells, 6 Second Bench Three Forks wells, and 8 Third Bench 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    

Shut in completion of Bootleg wells

    1,323  

SI

  57,669

Blackdog

3-13-14 HBK

  8,383 ft.   Bakken    

Shut in completion of Bootleg wells

    1,995  

SI

 

109,878

               
 
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    

Shut in for 2nd Bootleg pad completion

    1,078   SI   58,452
Coopers

2-15-14HBK

  6,360 ft.   Bakken     Shut in for 2nd Bootleg pad completion     556   SI   47,064
Little Creature

3-15-14HBK

  7,578 ft.   Bakken     Shut in for 2nd Bootleg pad completion     501   SI   72,284
 
 
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 2nd Bootleg pad completion     1117   SI   21,868
Matilda Bay

1-15-HBK

  4,215 ft.   Bakken     Shut in for 2nd Bootleg pad completion     318   SI   1,100
 
 
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 1     Flowing back     NA   NA   NA
Bootleg

5-14-15TFH

  7,495 ft.   Three Forks 1     Flowing back     NA   NA   NA
Ironbank

4-14-13TFH

  7,466 ft.   Three Forks 1     APD approved     NA   NA   NA
Ironbank

5-14-13TFH

  7,495 ft.   Three Forks 1     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 1     Drilling completed     NA   NA   NA
Bootleg

7-14-15TFH

  6,973 ft.   Three Forks 1     Drilling completed     NA   NA   NA
Bootleg

8-14-15TFH

  6,771 ft.   Three Forks 2     Drilling completed     NA   NA   NA
Ironbank

6-14-13TFH

  7,434 ft.   Three Forks 1     APD approved     NA   NA   NA
Ironbank

7-14-13TFH

  7,458 ft.   Three Forks 1     APD approved     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

Both Sail and Anchor 4-13-14HBK and Blackdog 3-13-14H remain shut in until the completion of the Bootleg 6/7/8 wells. Upon completion of the Bootleg 6/7/8 wells, the Blackdog 3-13-14H lateral section will be cleaned out.

Bootleg 8-14-15 TFH drilled the 6 inch lateral to 18,430 feet. The 4-1/2 inch production liner has been set and cemented at 18,268 feet. Frontier 24 will move to the North pad and drill the Ironbank wells 4 & 5 in the Three Forks.

Bootleg 5-14-15TFH frack has been completed and 23 plugs (out of 34) have been drilled out with a coiled tubing unit. The well was turned to production as of Tuesday Sept 2nd.

Bootleg 4-14-15TFH frack has been completed and 14 plugs (out of 28) have been drilled out with a coiled tubing unit. The coiled tubing unit was rigged down in anticipation of Frontier Rig 24 arrival on location to drill Ironbank 4 & 5 wells. The well was turned to production as of Tuesday Sept 2nd.

The drill out of the remaining plugs on the Bootleg 4 & 5 wells will take place with a work over rig after Frontier Rig 24 is released from the pad.

Bootleg 6, 7, and 8 will be fracked following removal of Frontier Rig 24 from the south pad.

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*     28.386330%     21.715553%
Bootleg 8-14-15H     28.386330%     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.

RAINBOW PROJECT, WILLIAMS COUNTY, NORTH DAKOTA
Gladys 1-20H (SSN 23%)

The Gladys 1-20 H well has been drilled by Continental Resources to a total depth of 19,994 feet. The well is a 1,280 acre lateral (approximately 10,000 feet) in the middle member of the Bakken Formation.

   

Lateral
length

  Objective   Status  

IP rate
BOPD

 

Avg. Rate
BOPD#

 

Cum to
Date BO

Gladys 1-20H   9,558 ft.   Middle Bakken   Preparing to flow back   NA   NA   NA

Gladys 1-20H has drilled out to frac plug #37 (of 39). The coiled tubing drill out operation was limited by the coils ability to enter the wellbore, unlike jointed pipe no additional weight can be applied in the vertical part of the coil. The operation therefore left 2 of the 39 plugs in the lateral un-drilled. These plugs are equipped to flow without being completely removed; the restriction to the flow back will be minimal.

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$0.39 per ADS on Sept 2nd, 2014, the Company has a current market capitalization of approximately US$57.88 million (the options have been valued at an exchange rate of 0.9239). 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 Sept 2nd, 2014, the Company has a current market capitalization of approximately A$62.33 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)

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Contacts

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