Samson Oil & Gas Limited (ASX: SSN; NYSE MKT: SSN):
NORTH STOCKYARD PROJECT, WILLIAMS COUNTY, NORTH DAKOTAThe
infill development drilling of North Stockyard continues with the
immediate fracking of 3 Three Fork wells (Bootleg 6, 7 and 8).
Drilling operations of the easterly Three Forks wells (Ironbank 4
and 5) have progressed according to plan. During the fracking
operations, the field was shut in to protect the existing well
bores. This shut in period is expected to be lifted late in
November following the completion of the immediate fracking
program.
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
Frackscheduled forNov
NA NA NA
Sail and Anchor4-13-14HBK
6,375 ft. Bakken
Shut in forfrack program
1,323 SI 57,669
Blackdog3-13-14 HBK
8,383 ft. Bakken
Shut in forfrack program
1,995 SI 109,878
TOFTE 2 PAD
Laterallength
Objective Status
IP rateBOPD
Avg. RateBOPD#
Cum toDate BO
Tooheys4-15-14HBK
6,740 ft. Bakken
Shut in forfrack program
1,078 SI 58,452
Coopers2-15-14HBK
6,360 ft. Bakken
Shut in forfrack program
556 SI 47,064
Little Creature3-15-14HBK
7,578 ft. Bakken
Shut in forfrack program
501 SI 72,284
MATILDA BAY PAD
Laterallength
Objective Status
IP rateBOPD
Avg. RateBOPD#
Cum toDate BO
Matilda Bay2-15-HBK
4,215 ft. Bakken
Shut in forfrack program
1117 SI 26,280
Matilda Bay1-15-HBK
4,215 ft. Bakken
Shut in forfrack program
318 SI 1,100
TF NORTH PAD
Laterallength
Objective Status
IP rateBOPD
Avg. RateBOPD#
Cum toDate BO
Bootleg4-14-15TFH
7,211 ft.
Three Forks1
Shut in forfrack program
NA NA 12,574
Bootleg5-14-15TFH
7,495 ft.
Three Forks1
Shut in forfrack program
NA NA 9,846
Ironbank4-14-13TFH
7,466 ft.
Three Forks1
Drillingcompleted
NA NA NA
Ironbank5-14-13TFH
7,495 ft.
Three Forks1
Drilling lateral at11,733 feet
NA NA NA
TF SOUTH PAD
Laterallength
Objective Status
IP rateBOPD
Avg. RateBOPD#
Cum toDate BO
Bootleg6-14-15TFH
6,867 ft.
Three Forks1
Frack completed NA NA
NA
Bootleg7-14-15TFH
6,973 ft.
Three Forks1
Frack underway NA NA
NA
Bootleg8-14-15TFH
6,771 ft.
Three Forks2
Frack completed NA NA
NA
Ironbank6-14-13TFH
7,434 ft.
Three Forks1
APD approved NA NA
NA
Ironbank7-14-13TFH
7,458 ft.
Three Forks1
APD approved 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 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
Bootleg 6 and 8 fracks have been completed. Both frack jobs were
25 stages, 3.5 million pound treatments. The Bootleg 7 frack job is
underway.
The Billabong 2-13-14HBK well is presently scheduled to be
fracked in November and the frack will consist of 35 stages.
Frontier Rig 24 is currently on the TF north pad and has drilled
and completed the Ironbank 4-14-13TFH in the Three Forks formation.
The rig is drilling Ironbank 5-14-13TFH where it has set the
production casing at 11,655 feet and is currently drilling the
lateral portion of the wellbore at 11,733 feet.
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%
* Wells have yet to be elected by
Samson and therefore are subject to change.
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.
MiddleBakken
Flowing 717 414
12,798
Since the Glady’s 1-20H was turned onto production September
7th, the well has produced an average of 414 BOPD.
HAWK SPRINGS PROJECT, GOSHEN COUNTY, WYOMINGBluff 1-11
(SSN 25%)
True Drilling Rig #26 is currently rigging up on the Bluff 1-11
well to drill out the temporary cement plug and set a liner across
the Permian 9,500 sand. This will then enable a flow test to be
undertaken after the True Drilling Rig #26 is moved off location.
This test is aimed at establishing a flow rate and will also enable
a detailed gas analysis to be undertaken. The test may also include
a shut-in period which can be used to establish whether a gas-oil
contact exists below the intersection of the Permian 9,500
sand.
TOTAL COMPANY PRODUCTIONSamson net production for 2014 is
as follows:
Q1
Q2 JULY
AUGUST
SEPTEMBER OIL, BO 29,408
50,639 17,310
7,791 5,527
GAS, MCF 48,518
50,141 17,820
14,569 10,988 BOE
37,494 58,996
20,280
10,219 7,358 BOEPD
417 656
654 329
245
Production has decreased since July due to new and vintage wells
in North Stockyard being shut in for the frack program. These wells
will be put back on production as the offset fracks are completed.
The lost production is expected to be made up once these wells are
restored to production due to the additional fracturing resulting
from the new well fracks. Importantly once production is restored 4
new wells will come on line along with the flush production from
the vintage wells.
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$0.25
per ADS on Oct 10th, 2014, the Company has a current market
capitalization of approximately US$37.88 million (the options have
been valued at an exchange rate of 0.8772). Correspondingly, based
on the ASX closing price of A$0.016 for ordinary shares and a
closing price of A$0.012 for the 2017 options, on Oct 10th, 2014,
the Company has a current market capitalization of approximately
A$48.15 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)