UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event
reported): April 29, 2015
Samson
Oil & Gas Limited
(Exact name of registrant as specified in
its charter)
| Australia |
|
001-33578 |
|
N/A |
| (State or other jurisdiction of incorporation or organization) |
|
(Commission file number) |
|
(I.R.S. Employer
Identification Number) |
| |
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Level 16, AMP Building,
140 St Georges Terrace
Perth, Western Australia 6000 |
|
|
| (Address of principal executive offices) |
|
(Zip Code) |
Registrant’s telephone number, including
area code: +61 8 9220 9830
(Former name or former
address, if changed since last report)
Check the appropriate box below if the Form 8-K filing
is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| o |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| |
|
| o |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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| o |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| |
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| o |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
ITEM 2.02 Results of Operations and Financial Conditions.
On April 29, 2015, Samson Oil & Gas
Limited filed its Australian Stock Exchange (ASX) quarterly report for the period ended March 31, 2014, with the ASX. A copy of
the ASX quarterly report is furnished as Exhibit 99.1 hereto, and a copy of the press release is furnished as Exhibit 99.2 hereto.
The information contained in this Item
2.02 (including Exhibits 99.1 and 99.2) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of
1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
ITEM 9.01 Financial Statements
and Exhibits.
(d) Exhibits
| Exhibit No. |
|
Description |
| 99.1 |
|
ASX quarterly report of Samson Oil & Gas Limited for the period ended March 31, 2015. |
| 99.2 |
|
Press Release dated April 29, 2015 |
SIGNATURE
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: May 1 , 2015 |
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Samson Oil & Gas Limited |
| |
|
|
| |
|
|
| |
By: |
/s/ Robyn Lamont |
| |
|
Robyn Lamont |
| |
|
Chief Financial Officer |
Exhibit 99.1
 |
QUARTERLY REPORT
for the period ended 31 March 2015 |
|
FINANCIAL
HIGHLIGHTS
| - | Average production for the month of March 2015 was 1,017 barrels of oil equivalent per day compared
to 465 for the month of March 2014. |
| - | Production for the quarter ended 31 March 2015 was 75,336 BOE compared to 37,201 BOE for the quarter
ended 31 March 2014. |
| - | Estimated oil and gas revenue was US$2.7 million for the quarter (there is generally a two to three
month delay between production and the receipt of funds). |
| - | The Company’s G&A cost was reduced to US$3.5 million expensed for the nine months to
31 March 2015, from US$4.8 million for the prior corresponding period in 2014. |
| - | Lease operating, exploration, valuation of derivatives and administration expense for the quarter
was US$2.4 million. |
| - | A net US$5.1 million was spent on development during the quarter, related to Samson’s share
of the North Stockyard project drilling program. |
| - | The closing cash balance for the quarter is US$2.6 million. |
| - | In April 2015, the Company closed out its 2015 hedge positions in order to crystalize the gains
made on those positions. The result was net cash inflow of $1.4 million. |
| - | The Company also put in additional downside protection in the form of deferred puts, which still
allows the Company to participate in the upside movement on the oil price above the put floor of US$45 per barrel. |
OPERATIONAL HIGHLIGHTS
| - | The North Stockyard field is being developed from several drill pads on which multiple wells are
located. As the program is one of infill drilling both between and beneath existing well bores, a large part of the field was shut
in during the December quarter to allow this activity to occur. The pad drilling and the intertwining well bores provides two operational
issues: one is that it would be unsafe to be drilling on a pad that contained a flowing well bore in close proximity, and accordingly
that producing well is shut in while those pad operations are underway; second, where a well is being fracture stimulated in close
proximity to an existing well bore, industry practice is to remove the pump and plug the well temporarily such that the pressure
pulse seen from conducting the adjacent fracture stimulation does not push proppant (“frack sand”) into that well bore
and damage the completion. |
| - | As a result of these operational constraints, during the quarter only 820 “well days”
of the available 2,208 “well days” were on production during the quarter. |
| - | Given that the drilling program has been curtailed, the North Stockyard field is being returned
to full production, currently, 20 wells are on stream and 6 wells are shut in. |
| - | In the Hawk Springs project in Wyoming, a cased hole testing program has been conducted in the
Permian Hartville 9500’ sand on the Bluff #1-11 well. This 40-hour test flowed 8 MMscf/D (97% nitrogen) on a 21/64”
choke with no decline in pressure. |
PRODUCTION
Production for the March 2015 quarter increased
from the December 2014 quarter as a result of the infill development program in North Stockyard despite the operational restraints
outlined above.
Samson Oil & Gas
Limited
Level 16, AMP Building,
140 St Georges Terrace, Perth WA 6000
T: +618 9220 9830
F: +618 9220 9820 ABN: 25 009 069 005 ASX: SSN |
Samson Oil & Gas
USA
1131, 17th
Street, Suite 710, Denver Colorado 80202
T: +1 303 295 0344
F: +1 303 295 1961 NYSE: SSN |
SAMSON OIL & GAS LIMITED
March 2015
Quarterly Report
Prior 12 month production by quarter
| |
Q2 2014 |
Q3 2014 |
Q4 2014 |
Q1 2015 |
| OIL, BO |
53,317 |
34,863 |
43,990 |
63,843 |
| GAS, MCF |
47,998 |
45,536 |
44,715 |
68,960 |
| BOE |
59,041 |
42,453 |
51,443 |
75,336 |
| BOEPD |
656 |
471 |
571 |
837 |
Current quarter production by month
| |
January |
February |
March |
| OIL, BO |
14,057 |
22,803 |
26,983 |
| GAS, MCF |
17,031 |
24,610 |
27,319 |
| BOE |
16,896 |
26,905 |
31,537 |
| BOEPD |
545 |
960 |
1,017 |
Note:
Production information (volumes and prices)
may differ from previously advised information as there is generally a two to three month lag between production and receipt of
sales and cash from the field operators. Prior to receiving the final sales information, production is estimated from information
provided by the operator and in some instances, third parties.
Estimated net production and revenue:
| |
OIL Bbls |
OIL US$ |
GAS Mscf |
GAS US$ |
TOTAL US$ |
| December 2014 Quarter |
43,990 |
2,573,747 |
44,715 |
204,528 |
2,778,275 |
| March 2015 Quarter |
63,843 |
2,472,179 |
68,960 |
225,634 |
2,697,813 |
Average commodity prices:
| |
GAS US$/Mscf |
OIL US$/Bbl |
| December 2014 Quarter |
$4.57 |
$58.51 |
| March 2015 Quarter |
$3.27 |
$38.72 |
In some cases revenue is yet to be received
and is therefore an estimate.
SAMSON OIL & GAS LIMITED
March 2015
Quarterly Report
LAND
| PROJECT |
BASIN |
STATE |
COUNTY |
NET ACRES |
| Hawk Springs |
DJ |
Wyoming |
Goshen |
18,821 |
| Roosevelt |
Williston |
Montana |
Roosevelt |
29,983 |
| North Stockyard |
Williston |
North Dakota |
Williams |
531 |
| Rainbow |
Williston |
North Dakota |
Williams |
950 |
| South Prairie |
Williston |
North Dakota |
Renville |
6,592 |
| State GC |
Delaware |
New Mexico |
Lea |
130
|
PROJECTS
PROJECTS LOCATION MAP
Hawk Springs Project, Goshen County,
Wyoming
Permo-Penn Project, Northern D-J Basin
Samson currently has a 37.5% Working
Interest
The Bluff Prospect was drilled last June to test multiple targets
in the Permian and Pennsylvanian sections in a 4-way structural trapping configuration. The Bluff #1-11 well reached a total depth
of 8,900 feet after intersecting the pre-Cambrian basement on June 13th, 2014.
SAMSON OIL & GAS LIMITED
March 2015
Quarterly Report
Various oil shows were observed in the
Cretaceous, Jurassic, Permian, and Pennsylvanian intervals while drilling. The Permian target zone (from 7738’-7756’)
exhibited excellent porosity (29% density porosity). Detailed analysis of the Permian target zone proved that it was the source
of the nitrogen gas that was seen while drilling the well. The presence of nitrogen in the Permian target zone validates the trap
in the Bluff prospect and has the potential to host an oil leg below the gas cap. This data led the partners to make the decision
to complete the Permian target sand.
The Permian target sand was flow tested
at a rate of 8 MMscf/D on a 21/64” choke during a 40 hour flow test and then shut-in for a 10 day build-up using down-hole
gauges. The buildup data has determined that the original reservoir pressure within the 9500 ft. sand is 3,459 psi. A chromatographic
analysis of the gas samples indicated that the majority of the gas was composed of nitrogen (97.5%), with some helium (0.15%),
carbon dioxide (0.15%), and the rest hydrocarbons (2.2%). A pressure transient analysis has confirmed that the 9500’ sand
is highly permeable (around 500 md) and also identified a movable fluid boundary (oil or water) downdip of the well. Isotope Geochemistry
analysis of the gas samples, has identified the source of the nitrogen, which is from a post-mature organic kerogen in the black
shales of the Pennsylvanian section. The hydrocarbons in the samples are mixed thermogenic post mature gases generated in the wet
gas/condensate window. All of the gathered evidence supports the theory that the fluid below the gas cap is likely to be oil. The
gas-fluid interface has been identified through the integration of the pressure transient test data with newly processed inverted
seismic data.
Samson is currently designing a second
flow test that would partially draw down the gas cap to determine if an oil leg is indeed present. If it is determined that the
fluid below the gas cap is oil, additional downdip wells could be drilled to recover the oil below the gas-oil contact. If water
is found beneath the gas cap, then three zones in the Jurassic and Cretaceous sections, which are behind the intermediate casing,
will subsequently be perforated and flow-tested. Log pay was determined in the both the Dakota and Morrison Formations. Using a
60% water saturation as a cut-off to determine oil productive zones, 23.5 feet of log pay was indicated in the Dakota (from 6,393
to 6,485 feet) and 3.5 feet in the Morrison (from 6,605 to 6,625 fee). The Jurassic Canyon Springs Formation could also be productive.
When comparing the Canyon Springs reservoir characteristics in the Bluff well to analog producing fields in the southern Powder
River Basin, there are many similarities between the two areas.
Spirit of America US34 #2-29 well
Samson 100% Working Interest
A re-completion in a 40 foot interval of
the Dakota Formation is currently being planned for late Q2 2015.
Rainbow Field, Williams County, North
Dakota
Mississippian Bakken Formation, Williston
Basin
Gladys 1-20H
Samson 23% and 52% Working Interest
During the quarter the Gladys 1-20H well
produced 34,800 barrels of oil (gross). The well was shut-in during most of the month of January to be put on an electric submersible
pump. This well is the first in the Rainbow project which is expected to support a drilling program of up to 14 wells, comprised
of 8 wells in the middle Bakken and 6 in the Three Forks. Samson anticipates drilling a Bakken well in sections 18-19 before the
end of 2015 to hold 1280 acres before the lease expires in early 2016.
South Prairie Project, North Dakota
Mississippian Mission Canyon Formation,
Williston Basin
Birch Prospect Samson 25% Working Interest
Samson recently elected to participate in its proportionate
25% working interest in 900 net acres in the Birch prospect. The target zone is the Wayne zone of the Mississippian Mission Canyon
Formation to be found at an expected depth of 4,800’ MD. It is anticipated that this prospect could be drilled in the
Q3 of 2015.
SAMSON OIL & GAS LIMITED
March 2015
Quarterly Report
LIQUIDITY
Sources of cash for the next quarter are
as follows:
| |
US$’000’s |
| Current cash on hand |
2,603 |
| Cash receipts from March quarter oil and gas sales |
2,000 |
| Proceeds from hedging |
1,453 |
| TOTAL |
6,056 |
* Estimate based on realized March quarter
production and $39 oil price (indicative of current Bakken oil pricing), allowing for a two month delay between production and
cash receipt
FINANCIAL
Cash Distribution
| Bank of the West (Samson’s trading bank) | |
| US$856,038 | |
| Bank of New York Mellon | |
| US$17,946 | |
| Mutual of Omaha | |
| US$494,523 | |
| National Australia Bank | |
| A$1,617,614 | |
Foreign Exchange Rates
The closing A$:US$ exchange rate on 31
March 2015 was $0.7634 The average A$:US$ exchange rate for the quarter was $0.7871.
The Company’s cash position at 31
March 2015 was as follows:
| |
|
US$ (‘000’s) |
| Cash at bank and on deposit |
: |
2,603 |
Hedging
Samson has the following hedging in place
with respect to WTI pricing:
| Calendar
Year | |
Volume-
BBLS | |
Floor | |
Ceiling |
| 2016 | |
2,788 | |
85.00 | |
89.85 |
| Calendar Year | |
Volume- BBLS | |
Floor | |
Ceiling |
| 2016 | |
36,600 | |
67.50 | |
82.50 |
| 2015 | |
73,500 | |
32.50 | |
45.00 |
In April 2015, Samson closed out its 2015
hedging position for net proceeds of $1.45 million. In conjunction with crystallising the value in the hedge portfolio, Samson
also purchased deferred puts with respect to 73,500 barrels of oil for production during 2015. These puts have a floor of $45.00
and sub floor of $32.50 and cost $1.36 per barrel, deferred until settlement of the hedge.
As at 31 March 2015 the value of Samson’s
hedging program was $2.1 million. Subsequent to closing out the 2015 position in early April, the value of the hedging portfolio
was $0.4 million at 20 April 2015.
|
For and on behalf of the Board of
SAMSON OIL & GAS LIMITED
|
For further information please contact
Denis Rakich, Company Secretary, on 08 9220 9882 |
 |
|
|
TERRY BARR
Managing Director |
Information contained in this report relating to hydrocarbon reserves was compiled by the Managing Director of Samson Oil & Gas Ltd., T M Barr a Geologist who holds an Associateship in Applied Geology and is a fellow of the Australian Institute of Mining and Metallurgy who has 30 years relevant experience in the oil & gas industry. |
30 April 2015
SAMSON OIL & GAS LIMITED
March 2015
Quarterly Report
Rule 5.3
Appendix 5B
Mining
exploration entity quarterly report
Introduced
01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10
| Name of entity |
| Samson Oil and Gas Limited |
| ABN |
|
Quarter ended (“current quarter”) |
| 25 009 069 005 |
|
31 March 2015 |
Consolidated statement of cash flows
|
Cash flows
related to operating activities
|
Current quarter
$US’000 |
Year to date (9. months)
$US’000 |
| 1.1 |
Receipts from product sales and related debtors
|
2,394 |
9,404 |
| 1.2 |
Payments for
(a) exploration & evaluation
(b) development
(c) production
(d) administration |
(100)
(5,120)
(1,239)
(1,100) |
(3,810)
(13,953)
(4,128)
(3,803) |
|
Dividends received |
|
|
|
Interest and other items of a similar nature received |
5 |
25 |
|
Interest and other costs of finance paid |
(158) |
(331) |
|
Income tax(payment) refund |
- |
(107) |
| |
Other (provide details if material) Costs
to abandon old wells
Receipts from derivative instruments (hedges) |
20
618 |
(906)
847 |
| |
Net Operating Cash Flows |
(4,680) |
(16,762) |
| |
Cash flows related to investing activities |
|
|
| |
Payment for purchases of:
(a) prospects
(b) equity investments
(c) other fixed assets |
- |
(24) |
| |
Proceeds from sale of:
(a) prospects
(b) equity investments
(c) other fixed assets |
-
-
- |
-
-
- |
| |
Loans to other entities |
|
|
| |
Loans repaid by other entities |
|
|
| |
Other (provide details if material) |
|
|
| |
Net investing cash flows |
- |
(24) |
| |
Total operating and investing cash flows |
(4,680) |
(16,786) |
| |
Cash flows related to financing activities |
|
|
| |
Proceeds from issues of shares, options, etc. |
- |
1 |
| |
Proceeds from sale of forfeited shares |
|
|
| |
Proceeds from borrowings |
3,500 |
13,000 |
| |
Repayment of borrowings |
|
|
| |
Dividends paid |
|
|
| |
Other (provide details if material) loan expenses
Costs of equity issued |
-
- |
(84)
(45) |
| |
Net financing cash flows |
3,500 |
12,872 |
| |
Net increase (decrease) in cash held
|
(1,180) |
(3,914) |
| |
Cash at beginning of quarter/year to date |
3,881 |
6,846 |
| |
Exchange rate adjustments to item 1.20 |
(98) |
(329) |
| |
Cash at end of quarter |
2,603 |
2,603 |
SAMSON OIL & GAS LIMITED
March 2015
Quarterly Report
Payments to directors of the entity
and associates of the directors
Payments to related entities of the
entity and associates of the related entities
| |
Current quarter
$US'000 |
|
1.23 |
Aggregate amount of payments to the parties included in item
1.2
|
201 |
|
1.24 |
Aggregate amount of loans to the parties included in item 1.10
|
- |
|
1.25 |
Explanation necessary for an understanding of the transactions |
|
|
Monies paid to Directors for salary and fees
|
Non-cash financing and investing activities
| 2.1 |
Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows |
| |
|
| 2.2 |
Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest |
| |
|
Financing facilities available
Add notes as necessary for an understanding of the position.
| |
|
Amount available
$US’000 |
Amount used
$US’000 |
| 3.1 |
Loan facilities
|
19,000 |
19,000 |
|
Credit standby arrangements
|
- |
- |
*In January 2014 a reserve based
debt facility was entered into for $25 million. The current borrowing base as at 31 March 2015 is $19 million, it is fully drawdown.
SAMSON OIL & GAS LIMITED
March 2015
Quarterly Report
Estimated cash outflows for next quarter*
| |
|
$US’000 |
| 4.1 |
Exploration and evaluation
|
50 |
|
Development
|
1,200 |
|
Production
|
1,087 |
|
Administration
|
1,400 |
| |
Total |
3,737
|
Reconciliation of cash
| Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. |
Current quarter
$US’000 |
Previous quarter
$US’000 |
| 5.1 |
Cash on hand and at bank |
2,603 |
3,881 |
| 5.2 |
Deposits at call |
- |
- |
|
Bank overdraft |
- |
- |
|
Other (provide details) |
- |
- |
| |
Total: cash at end of quarter (item 1.22) |
2,603 |
3,881 |
Changes in interests in mining tenements
| |
|
Tenement reference |
Nature of interest
(note (2)) |
Interest at beginning of quarter |
Interest at end of quarter |
| 6.1 |
Interests in mining tenements relinquished,
reduced or lapsed
|
|
|
|
|
|
Interests in mining tenements acquired or
increased
|
|
|
|
|
Issued and quoted securities at end
of current quarter – all reference to option exercise price is in AUSTRALIAN DOLLARS
SAMSON OIL & GAS LIMITED
March 2015
Quarterly Report
Description includes rate of interest
and any redemption or conversion rights together with prices and dates.
| |
Total number |
Number quoted |
Issue price per security (see note 3) (cents) |
Amount paid up per security (see note 3) (cents) |
| 7.1 |
Preference+securities (description) |
|
|
|
|
| 7.2 |
Changes during quarter
(a) Increases through issues
(b) Decreases through returns of capital, buy-backs, redemptions |
|
|
|
|
| 7.3 |
+Ordinary securities
|
2,837,782,022 |
2,837,782,022 |
|
|
| 7.4 |
Changes during quarter
(a) Increases through issues
(b) Decreases through returns of capital, buy-backs |
|
|
|
|
| 7.5 |
+Convertible debt securities (description) |
|
|
|
|
| 7.6 |
Changes during quarter
(a) Increases through issues
(b) Decreases through securities matured, converted |
|
|
|
|
| 7.7 |
Options
(description and conversion factor) |
4,000,000
229,634,519
4,000,000
87,033,246
|
-
229,634,51
-
- |
Exercise
price
15.5c
3.8c
3.9c
3.3c |
Expiry
date
31.10.2015
31.03.2017
30.11.2017
30.04.2018 |
| 7.8 |
Issued during quarter |
|
|
|
|
| 7.9 |
Exercised during quarter |
|
|
|
|
| 7.10 |
Expired during quarter |
|
|
|
|
| 7.11 |
Debentures
(totals only) |
|
|
|
|
| 7.12 |
Unsecured notes (totals only)
|
NIL |
NIL |
|
|
SAMSON OIL & GAS LIMITED
March 2015
Quarterly Report
Compliance statement
| 1 | This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations
Act or other standards acceptable to ASX (see note 5). |
| 2 | This statement does give a true and fair view of the
matters disclosed. |
| Sign here: |
|
|
Date: 30 April 2015 |
| |
(Company secretary) |
|
|
| |
|
|
|
| Print name: |
Denis Rakich |
|
|
Notes
| 1 | The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the
past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so,
in a note or notes attached to this report. |
| 2 | The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired,
exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions
precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest
and conditions precedent in the list required for items 6.1 and 6.2. |
| 3 | Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid
securities. |
| 4 | The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107:
Statement of Cash Flows applies to this report. |
| 5 | Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign
entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with. |
== == == == ==