Samson Oil & Gas Advisory
April 13 2015 - 9:00PM
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:
October
November December
January February
March OIL, BO 6,591
17,619 18,906 15,221
22,590 26,893 GAS, MCF 11,861
9,363 12,102 15,384
21,694 26,555 BOE
8,567 19,180 20,923
17,785 26,206 31,408 BOEPD
285 618 675
574 845 1,013
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
Samson’s net production for March continued to grow as the
results of the 2014 infill drilling in North Stockyard are
incorporated. Seven wells remain shut in as the Operator manages
the field with minimal operating cost in response to the current
oil price. Given that all of the wells have been drilled and
fracked, the individual well reports will be discontinued, however
we will provide mid-monthly production reports with commentary.
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 April was as follows:
Middle Bakken TF 1
TF 2 Well count 15 8
1 Producing 12 5
0 Shut in 3 3
1
HEDGE BOOK
In early April, Samson closed out its 2015 hedge book to
crystalize that value of $1.2 million and some additional down side
protection was put in place in the form of deferred puts which will
capture any future upside in the oil market. The hedged portfolio
is now 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 at April 10th, 2015 the book value of the hedge was
approximately $480,000, valued by Samson’s counterparty.
RESERVES
Samson commissioned Ryder Scott Company to determine its reserve
as at March 1st. This was done to capture the Proved Developed
Producing reserves value from several additional wells bought on
line in North Stockyard after January 1st, the date of our last
report. The net present value (NPV10) was calculated at a 10%
discount rate using the New York Mercantile Exchange (NYMEX) strip
price adjusted for regional differences. As of March 1st, 2015 our
reserves and NPV10 are:
PDP PNP
PROVED Oil MBBLS 1,133 430
1,563 Plant Products MBBLS 1
1 Gas MMCF
1,273 391 1,664 BOE MBBLS
1,346 495 1,841 NPV 10 M$
$27,360 $10,093 $37,453
NYMEX strip price and gas price assumptions:
2015 2016
2017 2018 2019 2020
2021 Oil per BBL $55.38
$62.62 $65.40 $67.32
$68.98 $70.80 $71.55 Plant
Products per BBL $19.38 $21.92
$22.98 $23.62 $24.14
$24.78 $25.04 Gas peer MMBTU
$2.87 $3.19 $3.47
$3.60 $3.70 $3.80
$4.13
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$1.49 per ADS on April 13th, 2015, the Company has a
current market capitalization of approximately US$21.5 million (the
options have been valued at an exchange rate of 0.7596).
Correspondingly, based on the ASX closing price of A$0.009 for
ordinary shares and a closing price of A$0.002 for the 2017
options, on April 13th, 2015, the Company has a current market
capitalization of approximately A$26.0 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, 303-296-3994 (US
office) or 970-389-5047 (US cell)CEO