Samson Oil & Gas Operational Update
November 24 2014 - 7:00PM
Business Wire
Samson Oil & Gas Limited (ASX: SSN; NYSE MKT: SSN):
HAWK SPRINGS PROJECT, GOSHEN COUNTY, WYOMING
Bluff 1-11 (SSN 25%)
The Bluff 1-11 well was perforated within the 9,500 sand over
the interval 7,738 to 7,754 feet, and the well unloaded the
completion brine almost immediately and flowed non inflammable gas
at a rate of 8 MMcfpd. The rate was relatively constant during the
41 hour flow period. The well flowed on a 20 or 21/64ths inch choke
at a tubing pressure of between 2,500 and 2,600 psig that increased
during the flow period. No formation water was evident. Gas samples
were taken and are in the process of being analyzed. The well is
currently shut in for approximately 10 days whilst the pressure
response is measured.
The gas flow was not able to be ignited, and based on our
previous samples was most likely largely nitrogen as determined
from the analysis of the wire line logs.
The test was designed to achieve several objectives all of which
have been achieved or are expected to be achieved:
1) To prove that a trap at the Bluff prospect
exists, this has been demonstrated with a flow rate that was
sustained during a lengthy flow period. This enables the
possibility of an oil leg being present down dip of the nitrogen
intersected in this well bore.
2) To prove that the 9,500 sand was a viable
reservoir, such that if an oil leg was present it could be
produced.
3) To enable clinical samples to be taken
particularly for the presence of helium which is often associated
with nitrogen in natural gas reservoirs. These samples will also
determine whether the nitrogen has an organic source or not.
4) To determine through transient pressure
analysis the presence of any fluid or reservoir boundaries.
5) To determine reservoir characteristics
such as reservoir pressure and permeability.
The data being collected in the near term includes the shut in
pressure data, and the sample analysis. This process is expected to
take three weeks after which we will have a clearer view as to the
possible commercial benefit of this discovery.
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$0.29
per ADS on November 24th, 2014, the Company has a current market
capitalization of approximately US$42.1 million (the options have
been valued at an exchange rate of 0.8678). Correspondingly, based
on the ASX losing price of A$0.017 for ordinary shares and a
closing price of A$0.005 for the 2017 options, on November 24th,
2014, the Company has a current market capitalization of
approximately A$46.5 million.
SAMSON OIL & GAS LIMITED
TERRY BARRManaging 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)