Samson Oil & Gas Operational Update
September 22 2014 - 9:00PM
Business Wire
Samson Oil & Gas Limited (ASX: SSN; NYSE MKT: SSN):
NORTH STOCKYARD PROJECT, WILLIAMS COUNTY, NORTH
DAKOTA
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 NA
568 8046 Bootleg
5-14-15TFH
7,495 ft. Three Forks 1 Flowing NA
468 5833 Ironbank
4-14-13TFH
7,466 ft. Three Forks 1 Drilling Lateral
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 Ironbank 4-14-13TFH is presently drilling the lateral
portion of the wellbore at 15,640 feet in the Three Forks
Formation.
The Bootleg 4 & 5 wells are now flowing. The Bootleg 4 has
averaged 568 BOPD and the Bootleg 5 has averaged 468 BOPD over the
course of the last week.
FRACTURE STIMULATION PROGRAM
Four north Stockyard wells are scheduled to be fracked in the
near term and these are set out in the following table:
Well Frack
Date Zone Stages Bootleg 7 September 28th
TF1 30 Bootleg 6 October 3rd TF1
30 Bootleg 8 October 12th TF2 30 Billabong
October 17th MB 35
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 Flowing
550 449 5,791
The flow back continues to be dominated by frack fluid, with
last week’s total fluid rate averaging 2,200 BFPD with an 80% water
cut. Water cuts in the middle Bakken are typically 25 to 30% and
therefore we are expecting to see this ratio to decrease as the
frack fluid is recovered. Importantly the stimulation has delivered
a well that has ample fluid capacity. Flowing pressure remains
robust at over 1,000 psi.
SOUTH PRAIRIE PROJECT, WARD COUNTY, NORTH DAKOTA
York #3-9 well (SSN 25%)
Drilling has been completed on the York #3-9 well located in
T156N R82W S3 on the eastern flank of the Williston Basin. Stephens
Production Company drilled the well to a total depth of 5,100’. The
top of the Glenburn target zone of the Mississippian Mission Canyon
Formation was found as expected at a depth of 4,944’ MD or 4,893’
TVD. The Glenburn was intersected 50’ high to the two show wells
originally thought to be near an oil-water contact, though the
Glenburn was found to be wet, and thus the well is currently being
plugged. One can conclude the reasoning for the wet Glenburn zone
is that the 4-way structural trap did not completely close on the
eastern edge of the trap which coincides with edge of the 3-D
seismic. The low-fold data along the edges of 3-D seismic surveys
are not always reliable and was one of the risks accounted for in
the original assessment of the Pubco prospect. Samson’s total cost
for its 25% working interest in the York well is estimated to be
approximately $175,000. Since this was the first test of three
different Glenburn structural closures mapped along the Devonian
Prairie Salt dissolution edge, the remaining two prospects will be
highly scrutinized by the Joint Venture to determine if they should
still be drilled.
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 Sept 22nd, 2014, the Company has a current market
capitalization of approximately US$49.26 million (the options have
been valued at an exchange rate of 0.8910). Correspondingly, based
on the ASX closing price of A$0.020 for ordinary shares and a
closing price of A$0.012 for the 2017 options, on Sept 22nd, 2014,
the Company has a current market capitalization of approximately
A$56.74 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.
Samson Oil & Gas LimitedTerry Barr, CEO, 303-296-3994
(US office)970-389-5047 (US cell)