Samson Oil & Gas Limited (ASX: SSN; NYSE MKT: SSN):
TOTAL COMPANY PRODUCTION
Samson’s net monthly production for the December 2014 quarter is
as follows:
October November
December OIL, BO 6,591 17,619 18,906 GAS, MCF
11,861 9,363 12,102 BOE 8,567 19,180 20,923 BOEPD 285 618 675
Samson’s net production by quarter for the calendar year ended
December 31, 2014 is as follows:
Q1 Q2
Q3 Q4 OIL, BO 29,430 53,317
35,074 43,116 GAS, MCF 48,049 47,998 46,581 33,326 BOE 37,494
59,041 43,361 48,670 BOEPD 416 656 481 540
Samson’s net production for the year ended December 31, 2014
compared to its net production for the year ended December 31, 2013
is as follows:
2013 2014 OIL, BO
51,994 160,937 GAS, MCF 174,300 175,954 BOE 81,044 190,262 BOEPD
222 521
The North Stockyard field continues to come back on line as the
remaining three development wells (Billabong, Ironbank 6 and 7) are
fracked. 5 existing wells around these wells remain shut-in whilst
the recently drilled wells are fracked to prevent any damage to the
well bores from this fracking activity. Harsh winter conditions
have slowed the fracking operation.
HEDGE BOOK
Samson has the following hedges in place:
Calendar year Volume bbls. Floor
Ceiling 2015 18,270 $85.00 $89.85 2016 2,788 $85.00 $89.85
Calendar year Volume bbls. Average per
month Swap 2014 4,588 4,488 $97.92 2015 39,791 3,316 $92.61
As at January 9, 2014 the book value of the hedge was $2.7
million as valued by Samson’s counterparty.
NORTH STOCKYARD PROJECT, WILLIAMS COUNTY, NORTH
DAKOTA
The infill development plan for North Stockyard consists of 8
middle Bakken wells that have been drilled and 22 Three Forks wells
of which 9 have been drilled (8 in the First Bench and 1 in the
Second Bench). Given the infill development curtailment there will
remain an undrilled balance of 13 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
Laterallength
Objective Status
IP rateBOPD
Avg. RateBOPD#
Cum toDate BO
Billabong2-13-14HBK
6,147 ft. Bakken Frack scheduled for January NA NA NA
Sail and Anchor4-13-14HBK
6,375 ft. Bakken Shut in for frack program 1,323 SI 56,233
Blackdog3-13-14 HBK
8,383 ft. Bakken Shut in for frack program 1,995 SI 109,878
Laterallength
Objective Status
IP rateBOPD
Avg. RateBOPD#
Cum toDate BO
Tooheys4-15-14HBK
6,740 ft. Bakken On production 1,078 543 74,806
Coopers2-15-14HBK
6,360 ft. Bakken On production 556 388 55,417
Little Creature3-15-14HBK
7,578 ft.
Bakken
Shut in for frack program 501 SI 72,284
MATILDA BAYPAD
Laterallength
Objective Status
IP rateBOPD
Avg. RateBOPD#
Cum toDate BO
Matilda Bay
2-15-HBK
4,215 ft. Bakken On Production 1,117 82 31,191 Matilda Bay
1-15-HBK
4,215 ft. Bakken On Production 318 11 12,799
TF NORTH PAD
Laterallength
Objective Status
IP rateBOPD
Avg. RateBOPD#
Cum toDate BO
Bootleg4-14-15TFH
7,211 ft. Three Forks 1 On production 471 238 54,943
Bootleg5-14-15TFH
7,495 ft. Three Forks 1 Shut in NA SI 49,866
Ironbank4-14-13TFH
7,466 ft. Three Forks 1 Requires a CTU cleanout NA NA NA
Ironbank5-14-13TFH
7,495 ft. Three Forks 1 On production 528 471 15,609
TF SOUTH
PAD
Laterallength
Objective Status
IP rateBOPD
Avg. RateBOPD#
Cum toDate BO
Bootleg6-14-15TFH
6,867 ft. Three Forks 1 Frack completed, SI NA NA NA
Bootleg7-14-15TFH
6,973 ft. Three Forks 1 Frack completed, SI NA NA NA
Bootleg8-14-15TFH
6,771 ft. Three Forks 2 Frack completed, SI 922 NA 922
Ironbank6-14-13TFH
7,434 ft. Three Forks 1 Drilling completed, awaiting frack NA NA NA
Ironbank7-14-13TFH
7,458 ft. Three Forks 1 Frack commenced NA NA NA
COMMENTARY
Frack operations have commenced on the Ironbank 7 well but have
been hampered by adverse weather conditions. This frack is expected
to be followed by Ironbank 6 and Billabong. A work over rig is
currently over Billabong running the frack string.
#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 oilBOE: Barrels of oil equivalent (gas converted at its
heating value)BOPD: Barrels of oil per dayMCF: Thousand cubic
feetBOEPD: Barrels of oil equivalent per day
NA: Not availableAPD: Application for Permit to DrillIP Rate:
Gross first 24 hour oil rateCurrent rate BOPD: Barrels of Oil per
DayCum to Date: Cumulative gross BO
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 28.386330% 21.715553% Bootleg
8-14-15H 28.386330% 21.715553% Ironbank 6-14-13TFH 26.746521%
20.461089% Ironbank 7-14-13TFH 26.746521% 20.461089%
RAINBOW PROJECT, WILLIAMS COUNTY, NORTH DAKOTAGladys
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.
Laterallength
Objective Status
IP rateBOPD
Avg. RateBOPD#
Cum toDate BO
Gladys 1-20H 9,558 ft. Middle Bakken SI 717 NA 34,054
EXPIRY OF UNLISTED OPTIONS
The following unlisted options have expired, unexercised on 31
December 2014.
Exercise Price Expiry
Number of options $0.08 31 December 2014 60,500,000 $0.164
31 December 2014 4,000,000
Following the expiry of the above mentioned unlisted options,
the Company’s capital structure is as follows:
Class of share Number of options
Listed
Ordinary fully paid shares 2,837,782,022 Options
($0.038 exp. 31 March 2017) 229,634,519
Unlisted
Options ($0.155 expiring 31 October 2015) 4,000,000 Options ($0.039
expiring 30 November 2017) 4,000,000 Options ($0.033 expiring 30
April 2018) 87,033,246
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$0.18
per ADS on January 12th, 2014, the Company has a current market
capitalization of approximately US$26.1 million (the options have
been valued at an exchange rate of 0.8244). Correspondingly, based
on the ASX closing price of A$0.014 for ordinary shares and a
closing price of A$0.003 for the 2017 options, on January 12th,
2014, the Company has a current market capitalization of
approximately A$40.4 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)