Samson Oil & Gas Limited (ASX: SSN; NYSE MKT: SSN):
TOTAL COMPANY PRODUCTION
Samson Oil and Gas Limited’s (“Samson” or the “Company”) net
monthly production, for the last six months, is as follows;
March
April May
June July August
OIL, BO 26,893 29,821
31,385 27,089 21,417
20,659 GAS, MCF 26,555 19,064
18,309 19,808 26,286
32,288 BOE 31,408 32,998
34,437 30,391 25,798
26,040 BOEPD 1,013 1,064
1,111 1,013 832
840
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
COMMENTARY
Production from North Stockyard was maintained at around 2,500
barrels per day (gross field production) in line with the Operators
nominated pipeline capacity. It is expected that this restriction
will continue through September. All wells in the field are on line
with the exception of Blackdog which underwent a short (3 day) shut
in to install a downhole pump. This well has recovered a cumulative
185,326 barrels of oil and has free flowed for 330 days. The well’s
performance has been linked to the 8 million pound of proppant
placed during the fracture stimulation of this well bore.
HEDGE BOOK
The Company’s hedge portfolio is as follows:
Calendar
year Volume bbls. Floor
Ceiling 2016 2,788
$85.00 $89.85
Calendar year
Volume bbls.
Sub Floor Floor Ceiling
2015 36,600 $45.00 $32.50
70.25 2016 36,600 $67.50
$82.50 - 2016 27,450
$40.00 $55.00 $80.00
As of September 13th, 2015 the book value of the hedge was
approximately $650,000 as valued by Samson’s counterparty.
BLUFF #1-11
The flow test of the Permian aged “9,500 sand” was discontinued
after the last pressure build-up test because it was concluded that
the observed fluid contact would not reach the well bore in the
short term. The flow test has neither confirmed nor discounted the
presence of a water or oil leg to the Bluff 1-11 accumulation. This
can now only be determined by drilling a down dip appraisal well,
which had previously been rejected by the joint venture partners in
response to the current oil price environment.
Samson is however investigating whether it might be feasible to
use the remaining 4 Bcf of nitrogen as an immiscible flood to the
oil saturated Niobrara Formation. The limiting variable in this is
likely to be the relatively low permeability exhibited in this
reservoir.
SPIRIT OF AMERICA US34 #1-29
The SOA 1 well has been flow tested, but a sustained rate has
yet to be established. The well has flowed fair amounts of gas (at
rates of around 275 Mcf/d) and has recovered limited (several
barrels) of 56.7 API oil. The well is perforated within the
Cretaceous Muddy Formation, which was previously fracture
stimulated after recording gas and oil shows and a creditable log
response.
The 3D seismic data demonstrates a possible stratigraphically
trapped channel sand. The Muddy Formation is also known as the
J-Sand, which is the most prolific producing zone within the D-J
Basin.
The well is equipped with a plunger lift system and will be
swabbed later this week after modifications are made to the
completion design.
BADGER #1
Samson has been notified by the operator of the Badger Prospect
that the first well is expected to spud late September due to rig
availability. The Badger #1 well is located in Section 29 of
Township 157N, Range 81W in Ward County, North Dakota. Samson has a
25% working interest in the well, which will target the Wayne zone
of the Mississippian Mission Canyon Formation at an expected depth
of 4,800 feet. The prospect is a 4-way structural closure that has
the potential for up to 6 wells with a prospect potential (if
hydrocarbons are present) of up to 2 MMbo recoverable.
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$0.67 per ADS on August 17th, 2015, the Company has a
current market capitalization of approximately US$9.6 million (the
options have been valued at an exchange rate of 0.7375).
Correspondingly, based on the ASX closing price of A$0.005 for
ordinary shares and a closing price of A$0.002 for the 2017
options, on August 17th, 2015, the Company has a current market
capitalization of approximately A$14.4 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20150914006395/en/
Samson Oil & Gas LimitedTerry Barr, CEO, 303-296-3994
(US office)