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     JUNE     JULY
OIL, BO     5,767     12,180     11,154     15,775     16,654     17,943     17,310
GAS, MCF     16,323     17,016     13,067     11,345     10,720     17,911     17,820
BOE     8,487     15,016     13,332     17,666     18,440     20,928     20,280
BOEPD     273     536     430     589     595     698     654
                           

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       222       54,811
Blackdog

3-13-14 HBK

      8,383 ft.       Bakken       Flowing       1,995       504       102,213
                                                 
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 Bootleg Frac       1,078       157       58,452
Coopers

2-15-14HBK

      6,360 ft.       Bakken       Shut in for Bootleg Frac       556       175       47,064
Little Creature

3-15-14HBK

      7,578 ft.       Bakken       Shut in for Bootleg Frac       501       244       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       Flowing       1117       284       21,629
Matilda Bay

1-15-HBK

      4,215 ft.       Bakken       Liner under repair       318       0       1,050
                                                 
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       Drilling in Progress       NA       NA       NA
Bootleg

7-14-15TFH

      6,973 ft.       Three Forks       Drilling completed       NA       NA       NA
Ironbank

6-14-13TFH

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

7-14-13TFH

      7,458 ft.       Three Forks       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
 

COMMENTARY

Frontier Rig 24 is currently drilling the lateral section of the wellbore at 16,801 feet MD in the Three Forks on the Bootleg 6-14-15TFH. The rig will then be moved to the north pad and begin drilling the two Ironbank wells.

Fracture stimulation on the Bootleg 4 and 5 will commence next week.

A rig is on site repairing the liner on the Matilda Bay 1. Following this work over the fracture stimulation program will begin once the Bootleg 6-14-15TFH is drilled.

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 (SSN 25%)

Samson will be holding a JV partner meeting this week to discuss Samson’s intent to test the Permian Hartville 9500’ sand target zone after an additional petrophysical analysis was conducted by an outside consulting expert. This analysis confirms that the target zone shows “gas effect” on the logs and tested the gas cap, or the structurally highest point of the trap, which may contain an oil leg beneath it.

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.

The 4-1/2 inch liner has been run with 39 packers and set at 19,828 feet. The rig was released on July 29th. A frac date is still awaited.

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$0.40 per ADS on Aug 4th, 2014, the Company has a current market capitalization of approximately US$59.33 million (the options have been valued at an exchange rate of 0.9294). 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 Aug 4th, 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)

Contacts

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