Samson Oil & Gas Advisory
July 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;
January February March
April May June OIL, BO
15,221 22,590 26,893 29,821
31,385 27,089 GAS, MCF 15,384
21,694 26,555 19,064 18,309 19,808 BOE
17,785 26,206 31,408 32,998
34,437 30,391 BOEPD 574 845
1,013 1,064 1,111 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
COMMENTARY
Production from North Stockyard was down for June compared to
the previous month due to increased line pressure in the regional
gas gathering system. This additional pressure was a result of the
gas gathering system installing additional compression which will
allow for additional gas volumes to be transported. This additional
line pressure required a number of wells within the field to be
restricted such that gas flaring was within acceptable regulatory
allowances. This problem is expected to be rectified with the
installation of higher pressure rated, process facility
equipment.
HEDGE BOOK
The hedged 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 73,500
$45.00 $32.50 70.25 2016 36,600
$67.50 $82.50 - 2016 27,450 $40.00
$55.00 $80.00
As of July 10th, 2015 the book value of the hedge was
approximately $419,000, valued by Samson’s counterparty.
BLUFF #1-11
The flow test of the Permian aged “9,500 sand” continued during
the month with the well flowing consistently at around 12.8 MMcf/D
of gas at a flowing pressure of 950 pounds per square inch gauge,
on a 46/64ths choke. Minor water production has been measured and
is condensed water rather than formation water.
The well will be shut in for a pressure build up, later this
week, and this data will be used to observe the movement of the
fluid boundary which was seen on the initial build up pressure
test.
The well has produced a total of 780 MMcf of gas and an analysis
of the build-up data will enable the reservoir model to be updated
as to when the water or oil leg can be expected to be seen at the
well.
SPIRIT OF AMERICA US34 #2-29
A workover rig has moved on the S.O.A. 2-29 well which is
located in Goshen County Wyoming, to abandon the deeper portion of
the hole and come up hole to perforate the Dakota Formation from
8054 to 8064 feet. The mudlog recorded an increase in gas upon
drilling through this interval along with shows of oil. After the
Dakota Formation has been perforated, the well will be flowed or
swabbed to determine the presence of hydrocarbons.
BADGER #1
Samson has been notified by the operator of the Badger Prospect
that the first well will spud mid to late August. 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$0.95 per ADS on July 13th, 2015, the Company has a
current market capitalization of approximately US$13.5 million (the
options have been valued at an exchange rate of 0.7762).
Correspondingly, based on the ASX closing price of A$0.007 for
ordinary shares and a closing price of A$0.002 for the 2017
options, on July 13th, 2015, the Company has a current market
capitalization of approximately A$20.1 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/20150713006390/en/
Samson Oil & Gas LimitedTerry Barr, CEO, 303-296-3994
(US office)