UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event
reported): October 30, 2015
Samson
Oil & Gas Limited
(Exact name of registrant as specified in
its charter)
Australia |
|
001-33578 |
|
N/A |
(State or other jurisdiction of incorporation or organization) |
|
(Commission file number) |
|
(I.R.S. Employer
Identification Number) |
|
|
|
|
|
Level 16, AMP Building,
140 St Georges Terrace
Perth, Western Australia 6000 |
|
|
(Address of principal executive offices) |
|
(Zip Code) |
Registrant’s telephone number, including
area code: +61 8 9220 9830
(Former name or former
address, if changed since last report)
Check the appropriate box below if the Form 8-K filing
is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
|
o |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
|
o |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
|
o |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| ITEM 2.02 | Results of Operations and Financial Conditions. |
On October 30, 2015, Samson Oil & Gas
Limited filed its Australian Stock Exchange (ASX) quarterly report for the period ended September 30, 2015, with the ASX. A copy
of the ASX quarterly report is furnished as Exhibit 99.1 hereto.
The information contained in this Item
2.02 (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933,
as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
| ITEM 9.01 | Financial Statements and Exhibits. |
Exhibit No. |
|
Description |
99.1 |
|
ASX quarterly report of Samson Oil & Gas Limited for the period ended September 30, 2015 |
SIGNATURE
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: October 30, 2015 |
|
|
|
|
|
|
Samson Oil & Gas Limited |
|
|
|
|
|
|
|
By: |
/s/ Robyn Lamont |
|
|
Robyn Lamont |
|
|
Chief Financial Officer |
Exhibit 99.1
|
QUARTERLY REPORT
for the period ended 30 September 2015
|
FINANCIAL
HIGHLIGHTS
| - | Average production for the quarter ended 30 September 2015 was 851 barrels of oil equivalent per
day compared to 481 BOEPD for the quarter ended 30 September 2014. |
| - | Production for the quarter ended 30 September 2015 was 72% higher at 76,649 BOE compared to 43,362
BOE for the quarter ended 30 September 2014. |
| - | Estimated oil and gas revenue was US$2.6 million for the quarter (there is generally a two to three
month delay between production and the receipt of funds). |
| - | The Company’s G&A cost was reduced to US$1.0 million expensed for the three months to
30 September 2015, from US$1.2 million for the prior corresponding period in 2014. |
| - | Lease operating, exploration, valuation of derivatives and administration expense for the quarter
was US$2.4 million compared to US$3.4 million for the three months ended 30 June 2015. |
| - | The closing cash balance for the quarter is US$2.1 million. |
OPERATIONAL
HIGHLIGHTS
| - | The North Stockyard field is currently on full production, with all 23 wells on stream. |
| - | In the Hawk Springs project in Wyoming, flow testing in the Permian Hartville 9500’ sand
on the Bluff #1-11 well has concluded. The well produced 1.2 BCF of gas and is now shut-in for pressure build-up monitoring. |
| - | A plunger-lift system was installed on the Spirit of America #1-29 well, in the Hawk Springs project
in Goshen County, Wyoming to effectively move the head of fluid off of the Muddy Formation to enhance potential production. |
| - | In the South Prairie project in Ward County, North Dakota, the Badger #1 well was drilled to a
depth of 4,900’ to test a 4-way structural closure in the Mission Canyon Formation. The decision was made to plug and abandon
the well due to a lack of oil shows and high water saturations. |
| - | Surveying for a new 3-D seismic survey in the Cane Creek project, Grand & San Juan Counties,
Utah has been completed. |
PRODUCTION
Production for the September 2015 quarter
decreased from the June 2015 quarter as a result of the natural decline expected from wells in Samson’s project area.
Prior 12 month production by quarter
|
Q4 2014 |
Q1 2015 |
Q2 2015 |
Q3 2015 |
OIL, BO |
43,932 |
63,612 |
87,684 |
60,723 |
GAS, MCF |
44,749 |
76,455 |
59,020 |
95,559 |
BOE |
51,390 |
76,355 |
97,520 |
76,649 |
BOEPD |
571 |
848 |
1,083 |
851 |
Samson Oil & Gas Limited |
Samson Oil & Gas USA |
Level 16, AMP Building, 140 St Georges Terrace, Perth WA 6000 |
1131, 17th Street, Suite 710, Denver Colorado 80202 |
T: +618 9220 9830 F: +618 9220 9820 ABN: 25 009 069 005 ASX:
SSN |
T: +1 303 295 0344 F: +1 303 295 1961 NYSE: SSN |
SAMSON OIL & GAS LIMITED
September
2015 Quarterly Report
Current quarter production by month
|
July |
August |
September |
OIL, BO |
21,376 |
20,425 |
18,922 |
GAS, MCF |
29,331 |
33,263 |
32,965 |
BOE |
26,265 |
25,969 |
24,416 |
BOEPD |
1,082 |
1,118 |
1,012 |
Note:
Production information (volumes and prices)
may differ from previously advised information as there is generally a two to three month lag between production and receipt of
sales and cash from the field operators. Prior to receiving the final sales information, production is estimated from information
provided by the operator and in some instances, third parties.
Estimated net production and revenue:
|
OIL Bbls |
OIL US$ |
GAS Mscf |
GAS US$ |
TOTAL US$ |
June 2015 Quarter |
87,320 |
4,291,858 |
60,769 |
160,823 |
4,452,681 |
September 2015 Quarter |
60,723 |
2,390,829 |
95,559 |
192,308 |
2,583,137 |
Average commodity prices:
|
GAS US$/Mscf |
OIL US$/Bbl |
June 2015 Quarter |
$2.64 |
$49.15 |
September 2015 Quarter |
$2.01 |
$39.37 |
In some cases revenue is yet to be received
and is therefore an estimate.
LAND
PROJECT |
BASIN |
STATE |
COUNTY |
NET ACRES |
Hawk Springs |
DJ |
Wyoming |
Goshen |
16,016 |
Roosevelt |
Williston |
Montana |
Roosevelt |
18,073 |
North Stockyard |
Williston |
North Dakota |
Williams |
531 |
Rainbow |
Williston |
North Dakota |
Williams |
950 |
South Prairie |
Williston |
North Dakota |
Renville |
6,512 |
State GC |
Delaware |
New Mexico |
Lea |
130
|
PROJECTS
Hawk Springs Project, Goshen County,
Wyoming
Permo-Penn Project, Northern D-J Basin
Samson currently has a 37.5% Working
Interest
Samson concluded its extended flow test
on the Bluff #1-11 well. The Permian Hartville sand (from 7738’-7756’) produced 1.2 BCF of nitrogen gas during a 100
day flow test. The goals of the test were to determine the reservoir drive mechanism and the type of fluid (oil or water, which
was identified from the pressure transient analysis and seismic inversion data) beneath the nitrogen gas cap. From the pressure
transient analysis data, it has been forecasted that it would likely take approximately 18 months before the water or oil leg could
be seen at the wellbore. The gas/fluid contact moved 180 feet over the 100 day flow test period and would likely need to move an
additional 420 feet to reach the wellbore. Following the results of this test, Samson has decided to shut the well in for 4 months
in order to monitor the pressure build-up. This will hopefully help to determine if there is any continuing fluid movement in the
reservoir. If the pressure builds back up to the original bottom hole pressure, Samson may be able to determine that the drive
mechanism is an active water drive at which point it may be worth opening the well up again to flow and potentially identify an
oil leg. If the bottom hole reservoir pressures remain low after the build-up, the Permian Hartville zone will be abandoned and
additional recompletions will occur in the uphole zones where other hydrocarbon shows were observed. The final evaluation of the
pressure build-up is expected to be completed during the first quarter of calendar 2016.
SAMSON OIL & GAS LIMITED
September
2015 Quarterly Report
Spirit of America US34 #1-29 well
Samson 100% Working Interest
In an effort to establish continuous production
from the Muddy Formation, the tubing in the SOA 1-29 well was perforated 120 feet above the packer on September 18, 2015 to establish
tubing & casing annulus communication. Two feet of perforations (7650-7652’) were shot with 4 shots per foot (8 shots
fired in all). The well is currently waiting on a swabbing unit to remove a full column of fluid out of the wellbore to allow the
well to flow freely. After the swabbing is completed, a plunger lift system will then be used to continuously lift fluid from the
wellbore.
This well was completed and fracked with
107,268 pounds of proppant in December of 2011. The well was flowed for 4 days after the frack and only recovered half of the load
water with no oil. The well has sat shut-in for the last 4 years and was opened up this summer flowing at a rate of around 275
Mcf/d with a few barrels of 56.7 degree API oil produced. The presence of hydrocarbons here means the entire Muddy channel could
be filled with hydrocarbons because the SOA 1-29 well was drilled at the structurally lowest point within the Muddy channel system.
This is the same zone that produced over a half-million barrels of oil in Torrington Field a township over to the east.
Rainbow Field, Williams County, North
Dakota
Mississippian Bakken Formation, Williston
Basin
Gladys 1-20H
Samson 23% and 52% Working Interest
During the quarter the Gladys 1-20H well
produced 17,594 barrels of oil (gross) which was almost the same as the production from the previous quarter. This well is the
first in the Rainbow project, which is expected to support a drilling program of up to 14 wells, comprised of 8 wells in the middle
Bakken and 6 in the Three Forks.
South Prairie Project, North Dakota
Mississippian Mission Canyon Formation,
Williston Basin
Badger #1 well (Formerly known as the Birch Prospect )Samson
25% Working Interest
Samson participated in its proportionate
25% working interest in the drilling of the Badger #1 well in Section 29 of Township 157N, Range 81W in Ward County, North Dakota.
The well was drilled to a depth of 4,900 feet in 7 days for the total cost of approximately $400,000 (SSN’s share is approximately
$90,000). The prospect was identified as a 375 acre 4-way structural closure on the South Prairie 3-D seismic survey. Approximately
30 feet of structural closure relief was interpreted. The targeted porosity zone of the Mississippian Mission Canyon Formation
was found at a depth of 4,774’ MD, which was 55 feet structurally high to the offsetting Anschutz
Helseth #1 well and 36 feet high to the offsetting Apache Corporation’s Ward Estate #1-29 well proving the existence of the
4-way structural closure. However, low resistivity readings (averaging 2 ohm’s), a lack of oil shows, and calculated high
water saturations (>80%) indicate the targeted reservoir is non-productive. Therefore, the decision was made to plug and abandon
the well.
Cane Creek Project, Grand & San
Juan Counties, Utah
Pennsylvanian Paradox Formation, Paradox
Basin
Samson 100% Working Interest
On November 5, 2014, Samson entered into
an Other Business Arrangement (“OBA”) with the Utah School and Institutional Trust Lands Administration (“SITLA”)
covering approximately 8,080 gross/net acres located in Grand and San Juan Counties, Utah, all of which are administered by SITLA.
Samson was granted an option period for two years in order to enter into a Multiple Mineral Development Agreement (“MMDA”)
with another company who hold leases to extract potash in an acreage position situated within our project area. Upon entering into
the MMDA, SITLA is obligated to deliver oil and gas leases covering our project area at cost of $75 per acre to Samson.
This acreage is located in the heart of
the Cane Creek Clastic Play of the Paradox Formation along the Cane Creek anticline. The primary drilling objective is the overpressured
and oil saturated Cane Creek Clastic interval. Keys to the play to date include positioning along the axis of the Cane Creek anticline
and exposure to open natural fractures. The 3-D seismic is currently being designed to image these natural fractures. The seismic
shoot was surveyed and permitted this past summer. This project displays very robust economics in a low priced oil environment
using the evidence obtained from a nearby competitor well that has produced 802,967 BO in just
over two years and has an EUR of 1.2 million barrels of oil. Initial production rates are around 1,500 BOPD and decline rates are
very modest.
SAMSON OIL & GAS LIMITED
September
2015 Quarterly Report
LIQUIDITY
Sources of cash for the next quarter are
as follows:
|
US$(’000’s) |
Current cash on hand |
2,100 |
Cash receipts from September quarter oil and gas sales |
1,800 |
Undrawn credit facility |
300 |
Fair market value – hedging |
600 |
TOTAL |
4,800 |
* Estimate based on realized September
quarter production and $38 oil price (indicative of current Bakken oil pricing), allowing for a two month delay between production
and cash receipt
FINANCIAL
Cash Distribution
Bank of the West (Samson’s trading
bank) US$1,757,980
Bank of New York Mellon US$17,946
Mutual of Omaha US$121,210
National Australia Bank A$310,299
Foreign Exchange Rates
The closing A$:US$ exchange rate on 30 September
2015 was $0.7010 The average A$:US$ exchange rate for the quarter was $0.7258.
The Company’s cash position at 30
September 2015 was as follows:
|
US$(‘000’s) |
Cash at bank on deposit |
2,114 |
Hedging
Samson has the following hedging in place
with respect to WTI pricing:
Calendar Year |
Volume-BBLS |
Floor |
Ceiling |
2016 |
2,788 |
85.00 |
89.85 |
Calendar Year |
Volume-BBLS |
Ceiling |
Sub floor |
Floor |
2015 |
27,600 |
70.25 |
32.50 |
45.00 |
2016 |
36,600 |
- |
67.50 |
82.50 |
2016 |
27,450 |
80.00 |
55.00 |
40.00 |
As at 30 September 2015, the value of Samson’s
hedging program was $0.6 million. At 23 October 2015 the value of Samson’s hedging program was $0.6 million
SAMSON OIL & GAS LIMITED
September
2015 Quarterly Report
For and on behalf of the Board of |
For further information please contact |
SAMSON OIL & GAS LIMITED |
Denis Rakich, Company Secretary, on 08 9220 9882 |
TERRY BARR
Managing Director
30 October 2015 |
Information contained in this report relating to hydrocarbon reserves was compiled by the Managing
Director of Samson Oil & Gas Ltd., T M Barr a Geologist who holds an Associateship in Applied Geology and is a fellow
of the Australian Institute of Mining and Metallurgy who has 30 years relevant experience in the oil & gas industry. |
SAMSON OIL & GAS LIMITED
September
2015 Quarterly Report
Rule 5.3
Appendix 5B
Mining
exploration entity quarterly report
Introduced
01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10
Name of entity |
Samson Oil and Gas Limited |
ABN |
|
Quarter ended (“current quarter”) |
25 009 069 005 |
|
30 September 2015 |
Consolidated statement of cash flows
Cash flows
related to operating activities
|
Current quarter
$US’000 |
Year to date (3.months)
$US’000 |
1.1 |
Receipts from product sales and related debtors
|
4,233 |
4,233 |
1.2 |
Payments for
(a) exploration & evaluation
(b) development
(c) production
(d) administration |
(109)
(1,081)
(1,449)
(1,191) |
(109)
(1,081)
(1,449)
(1,191) |
1.3 |
Dividends received |
|
|
1.4 |
Interest and other items of a similar nature received |
1 |
1 |
1.5 |
Interest and other costs of finance paid |
(205) |
(205) |
1.6 |
Income tax(payment) refund |
- |
- |
1.7 |
Other (provide details if material) Costs
to abandon old wells
Receipts from derivative instruments (hedges) |
(98)
20 |
(98)
20 |
|
Net Operating Cash Flows |
121 |
121 |
|
Cash flows related to investing activities |
|
|
1.8 |
Payment for purchases of:
(a) prospects
(b) equity investments
(c) other fixed assets |
- |
- |
1.9 |
Proceeds from sale of:
(a) prospects
(b) equity investments
(c) other fixed assets |
-
-
- |
-
-
- |
1.10 |
Loans to other entities |
|
|
1.11 |
Loans repaid by other entities |
|
|
1.12 |
Other (provide details if material) |
|
|
|
Net investing cash flows |
- |
- |
1.13 |
Total operating and investing cash flows |
121 |
121 |
|
Cash flows related to financing activities |
|
|
1.14 |
Proceeds from issues of shares, options, etc. |
1 |
1 |
1.15 |
Proceeds from sale of forfeited shares |
|
|
1.16 |
Proceeds from borrowings |
- |
- |
1.17 |
Repayment of borrowings |
- |
- |
1.18 |
Dividends paid |
|
|
1.19 |
Other (provide details if material)
|
-
|
-
|
|
Net financing cash flows |
- |
- |
|
Net increase (decrease) in cash held
|
122 |
122 |
1.20 |
Cash at beginning of quarter/year to date |
2,062 |
2,062 |
1.21 |
Exchange rate adjustments to item 1.20 |
(70) |
(70) |
1.22 |
Cash at end of quarter |
2,114 |
2,114 |
SAMSON OIL & GAS LIMITED
September
2015 Quarterly Report
Payments to directors of the entity
and associates of the directors
Payments to related entities of the
entity and associates of the related entities
|
Current quarter
$US'000 |
1.23 |
Aggregate amount of payments to the parties included in item
1.2
|
201 |
1.24 |
Aggregate amount of loans to the parties included in item 1.10
|
- |
1.25 |
Explanation necessary for an understanding of the transactions |
|
Monies paid to Directors for salary and fees
|
Non-cash financing and investing activities
2.1 |
Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows |
|
|
2.2 |
Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest |
|
|
Financing facilities available
Add notes as necessary for an understanding of the position.
|
|
Amount available
$US’000 |
Amount used
$US’000 |
3.1 |
Loan facilities
|
19,000 |
18,699 |
3.2 |
Credit standby arrangements
|
- |
- |
*In January 2014 a reserve based
debt facility was entered into for $25 million. The current borrowing base as at 30 September 2015 is $19 million.
Estimated cash outflows for next quarter*
|
|
$US’000 |
4.1 |
Exploration and evaluation
|
50 |
4.2 |
Development
|
50 |
4.3 |
Production
|
1,200 |
4.4 |
Administration
|
1,000 |
|
Total |
2,300
|
* Estimated cash outflows will be
funded through cash receipts from oil and gas sales.
SAMSON OIL & GAS LIMITED
September
2015 Quarterly Report
Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. |
Current quarter
$US’000 |
Previous quarter
$US’000 |
5.1 |
Cash on hand and at bank |
2,144 |
2,031 |
5.2 |
Deposits at call |
- |
- |
5.3 |
Bank overdraft |
- |
- |
5.4 |
Other (provide details) |
- |
- |
|
Total: cash at end of quarter (item 1.22) |
2,144 |
2,031 |
Changes in interests in mining tenements
|
|
Tenement reference |
Nature of interest
(note (2)) |
Interest at beginning of quarter |
Interest at end of quarter |
6.1 |
Interests in mining tenements relinquished,
reduced or lapsed
|
|
|
|
|
6.2 |
Interests in mining tenements acquired or
increased
|
|
|
|
|
Issued and quoted securities at end
of current quarter – all reference to option exercise price is in AUSTRALIAN DOLLARS
Description includes rate of interest
and any redemption or conversion rights together with prices and dates.
|
Total number |
Number quoted |
Issue price per security (see note 3) (cents) |
Amount paid up per security (see note 3) (cents) |
7.1 |
Preference +securities(description) |
|
|
|
|
7.2 |
Changes during quarter
(a) Increases through issues
(b) Decreases through returns of capital, buy-backs, redemptions |
|
|
|
|
7.3 |
+Ordinary securities
|
2,837,834,301 |
2,837,834,301 |
|
|
7.4 |
Changes during quarter
(a) Increases through issues
(b) Decreases through returns of capital, buy-backs |
52,279 |
52,279 |
3.8 cents |
3.8 cents |
7.5 |
+Convertible debt securities (description) |
|
|
|
|
7.6 |
Changes during quarter
(a) Increases through issues
(b) Decreases through securities matured, converted |
|
|
|
|
7.7 |
Options(description and conversion factor) |
4,000,000
229,582,240
4,000,000
87,033,246
|
-
229,582,240
-
- |
Exercise
price
15.5c
3.8c
3.9c
3.3c |
Expiry
date
31.10.2015
31.03.2017
30.11.2017
30.04.2018 |
7.8 |
Issued during quarter |
|
|
|
|
7.9 |
Exercised during quarter |
52,279 |
52,279 |
3.8c |
31.03.2017 |
7.10 |
Expired during quarter |
|
|
|
|
7.11 |
Debentures
(totals only) |
|
|
|
|
7.12 |
Unsecured notes (totals only)
|
NIL |
NIL |
|
|
SAMSON OIL & GAS LIMITED
September
2015 Quarterly Report
Compliance
statement
| 1 | This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations
Act or other standards acceptable to ASX (see note 5). |
| 2 | This statement does give a true and fair view of the
matters disclosed. |
Sign here: |
|
Date:
30 October 2015 |
|
(Company secretary) |
|
|
|
|
Print name: |
Denis Rakich |
|
Notes
| 1 | The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the
past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so,
in a note or notes attached to this report. |
| 2 | The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired,
exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions
precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest
and conditions precedent in the list required for items 6.1 and 6.2. |
| 3 | Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid
securities. |
| 4 | The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107:
Statement of Cash Flows applies to this report. |
| 5 | Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign
entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with. |
== == == == ==