Samson Oil & Gas Advisory
June 15 2015 - 8:30PM
Business Wire
Samson Oil & Gas Limited (ASX: SSN; NYSE MKT: SSN)
TOTAL COMPANY PRODUCTION
Samson’s net monthly production, for the last six months, is as
follows;
December
January February March
April May OIL, BO 18,906 15,221
22,590 26,893 29,821 31,385 GAS, MCF
12,102 15,384 21,694 26,555
19,064 18,309 BOE 20,923 17,785 26,206
31,408 32,998 34,437 BOEPD 675
574 845 1,013 1,064 1,111
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
Samson continues to increase its net oil production given the
higher availability of wells within the North Stockyard field.
Currently all wells are on line.
COMMENTARY
North Stockyard has a total well count of 23 wells made up of 14
middle Bakken, 8 Three Forks bench 1 (TF1), and 1 Three Forks bench
2 (TF2) wells. Rainbow has a single middle Bakken well. The status
of these wells at the end of May was as follows:
Middle Bakken TF 1 TF 2 Total
Well count 15 8 1 24 Producing
15 8 1 24 Shut in 0 0 0
0
HEDGE BOOK
The hedged portfolio is as follows:
Calendar year
Volume bbls. Floor Ceiling 2016 2,788
$85.00 $89.85
Calendar year Volume bbls Sub Floor
Floor 2015 73,500 45.00 32.50 2016
36,600 67.50 82.50
As of June 14th, 2015 the book value of the hedge was
approximately $240,000, valued by Samson’s counterparty.
BLUFF 1-11X
An extended flow test of the Permian aged “9,500 sand” continued
during the month with the well flowing consistently at around 12.2
MMcf/D of gas at a flowing pressure of 1,500 pounds per square inch
gauge, on a 34/64ths choke. Some water production has been
measured, and based on the chemical analysis of this water it is
water of condensation, rather than formation water associated with
a water leg. This conclusion is based on the “freshness” of the
water, which means the water is condensed in the production system
and is therefore in a vapor phase in the reservoir. The volumes
being produced are less than 20 barrels of water per day which is
consistent with an ability for the gas to contain 600 lbs. of water
vapor per million cubic feet of gas at the known reservoir
conditions (pressure of 2900 psi and a temperature of 250 degrees
F).
This reservoir had previously been flow tested at around 8
MMcf/D of gas composed of 97% nitrogen and 3% hydrocarbons. Various
technical analyses have suggested that a fluid boundary is present
within the reservoir volume and this test is designed to produce a
portion of the gas cap in order to observe whether the fluid
beneath the gas cap is either water or oil.
The well was shut in for a pressure build up during the weekend
of June 13 and 14, and this data will be used to observe the
movement of the fluid boundary, which was seen on the initial build
up pressure test. The well has produced a total of 440 MMcf of gas.
An analysis of the build-up data will enable the reservoir model to
be updated as to when the water or oil leg can be expected to be
seen at the well. Thus far the modelled and actual reservoir
pressure appears to be consistent with the extracted volume and as
such we expect to produce around 1,200 MMcf of gas before seeing
either the water or oil leg to this reservoir. However there is
some uncertainty in this model because of the unknown variables of
hydrostatic pressure and the volatility of the oil leg if it
exists.
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 200 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
14.185 million ADSs. Accordingly, based on the NYSE MKT closing
price of US$1.16 per ADS on June 15th, 2015, the Company has a
current market capitalization of approximately US$16.8 million (the
options have been valued at an exchange rate of 0.7762).
Correspondingly, based on the ASX closing price of A$0.007 for
ordinary shares and a closing price of A$0.002 for the 2017
options, on June 15th, 2015, the Company has a current market
capitalization of approximately A$20.3 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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150615006502/en/
Samson Oil & Gas LimitedTerry Barr, CEO,
303-296-3994