SAMSON OIL & GAS ADVISORY
Denver 1700 hours January 12th, 2015, Perth 0700 hours January 13th, 2015
TOTAL COMPANY PRODUCTION
Samson's net monthly production for the December 2014 quarter is as follows:
October
|
November
|
December
|
OIL, BO
|
6,591
|
17,619
|
18,906
|
GAS, MCF
|
11,861
|
9,363
|
12,102
|
BOE
|
8,567
|
19,180
|
20,923
|
BOEPD
|
285
|
618
|
675
|
Samson's net production by quarter for the calendar year ended December 31, 2014 is as follows:
Q1
|
Q2
|
Q3
|
Q4
|
OIL, BO
|
29,430
|
53,317
|
35,074
|
43,116
|
GAS, MCF
|
48,049
|
47,998
|
46,581
|
33,326
|
BOE
|
37,494
|
59,041
|
43,361
|
48,670
|
BOEPD
|
416
|
656
|
481
|
540
|
Samson's net production for the year ended December 31, 2014 compared to its net production for the year ended December 31, 2013 is as follows:
2013
|
2014
|
OIL, BO
|
51,994
|
160,937
|
GAS, MCF
|
174,300
|
175,954
|
BOE
|
81,044
|
190,262
|
BOEPD
|
222
|
521
|
The North Stockyard field continues to come back on line as the remaining three development wells (Billabong, Ironbank 6 and 7) are fracked. 5 existing wells around these wells remain shut-in whilst the recently drilled wells are fracked to prevent any damage to the well bores from this fracking activity. Harsh winter conditions have slowed the fracking operation.
HEDGE BOOK
Samson has the following hedges in place:
Calendar year
|
Volume bbls.
|
Floor
|
Ceiling
|
2015
|
18,270
|
$85.00
|
$89.85
|
2016
|
2,788
|
$85.00
|
$89.85
|
|
Calendar year
|
Volume bbls.
|
Average per month
|
Swap
|
2014
|
4,588
|
4,488
|
$97.92
|
2015
|
39,791
|
3,316
|
$92.61
|
As at January 9, 2014 the book value of the hedge was $2.7 million as valued by Samson's counterparty.
Samson Oil & Gas USA
1331, 17thStreet, Suite 710, Denver Colorado 80202 Tel + 1 303 295 0344 Fax + 1 303 295 1961
Samson Oil & Gas Limited
Level 16, AMP Building, 140 St Georges Terrace, Perth Western Australia 6000 / PO Box 7654, Cloisters Square Perth Western Australia 6850
Tel+ 61 8 9220 9830 Fax+ 61 8 9220 9820 ABN25 009 069 005 ASXCode SSN
NORTH STOCKYARD PROJECT, WILLIAMS COUNTY, NORTH DAKOTA
The infill development plan for North Stockyard consists of 8 middle Bakken wells that have been drilled and 22 Three Forks wells of which 9 have been drilled (8 in the First Bench and 1 in the Second Bench). Given the infill development curtailment there will remain an undrilled balance of
13 wells. For ease of reference, the current status of each well is set out below with separate
tables for each drill pad:
TOFTE 1 PAD
|
Lateral length
|
Objective
|
Status
|
IP rate
BOPD
|
Avg. Rate
BOPD#
|
Cum to
Date BO
|
Billabong
2-13-14HBK
|
6,147 ft.
|
Bakken
|
Frack scheduled for January
|
NA
|
NA
|
NA
|
Sail and Anchor
4-13-14HBK
|
6,375 ft.
|
Bakken
|
Shut in for frack program
|
1,323
|
SI
|
56,233
|
Blackdog
3-13-14 HBK
|
8,383 ft.
|
Bakken
|
Shut in for frack program
|
1,995
|
SI
|
109,878
|
Lateral length
|
Objective
|
Status
|
IP rate
BOPD
|
Avg. Rate
BOPD#
|
Cum to
Date BO
|
Tooheys
4-15-14HBK
|
6,740 ft.
|
Bakken
|
On production
|
1,078
|
543
|
74,806
|
Coopers
2-15-14HBK
|
6,360 ft.
|
Bakken
|
On production
|
556
|
388
|
55,417
|
Little Creature
3-15-14HBK
|
7,578 ft.
|
Bakken
|
Shut in for frack program
|
501
|
SI
|
72,284
|
MATILDA BAY PAD
|
Lateral length
|
Objective
|
Status
|
IP rate
BOPD
|
Avg. Rate
BOPD#
|
Cum to
Date BO
|
Matilda Bay
2-15-HBK
|
4,215 ft.
|
Bakken
|
On
Production
|
1,117
|
82
|
31,191
|
Matilda Bay
1-15-HBK
|
4,215 ft.
|
Bakken
|
On
Production
|
318
|
11
|
12,799
|
Samson Oil & Gas USA
1331, 17thStreet, Suite 710, Denver Colorado 80202 Tel + 1 303 295 0344 Fax + 1 303 295 1961
Samson Oil & Gas Limited
Level 16, AMP Building, 140 St Georges Terrace, Perth Western Australia 6000 / PO Box 7654, Cloisters Square Perth Western Australia 6850
Tel+ 61 8 9220 9830 Fax+ 61 8 9220 9820 ABN25 009 069 005 ASXCode SSN
TF NORTH PAD
|
Lateral length
|
Objective
|
Status
|
IP rate
BOPD
|
Avg. Rate
BOPD#
|
Cum to
Date BO
|
Bootleg
4-14-15TFH
|
7,211 ft.
|
Three
Forks 1
|
On production
|
471
|
238
|
54,943
|
Bootleg
5-14-15TFH
|
7,495 ft.
|
Three
Forks 1
|
Shut in
|
NA
|
SI
|
49,866
|
Ironbank
4-14-13TFH
|
7,466 ft.
|
Three
Forks 1
|
Requires a
CTU cleanout
|
NA
|
NA
|
NA
|
Ironbank
5-14-13TFH
|
7,495 ft.
|
Three
Forks 1
|
On production
|
528
|
471
|
15,609
|
TF SOUTH PAD
|
Lateral length
|
Objective
|
Status
|
IP rate
BOPD
|
Avg. Rate BOPD#
|
Cum to
Date BO
|
Bootleg
6-14-15TFH
|
6,867 ft.
|
Three
Forks 1
|
Frack completed, SI
|
NA
|
NA
|
NA
|
Bootleg
7-14-15TFH
|
6,973 ft.
|
Three
Forks 1
|
Frack completed, SI
|
NA
|
NA
|
NA
|
Bootleg
8-14-15TFH
|
6,771 ft.
|
Three
Forks 2
|
Frack completed, SI
|
922
|
NA
|
922
|
Ironbank
6-14-13TFH
|
7,434 ft.
|
Three
Forks 1
|
Drilling completed, awaiting frack
|
NA
|
NA
|
NA
|
Ironbank
7-14-13TFH
|
7,458 ft.
|
Three
Forks 1
|
Frack commenced
|
NA
|
NA
|
NA
|
Samson Oil & Gas USA
1331, 17thStreet, Suite 710, Denver Colorado 80202 Tel + 1 303 295 0344 Fax + 1 303 295 1961
Samson Oil & Gas Limited
Level 16, AMP Building, 140 St Georges Terrace, Perth Western Australia 6000 / PO Box 7654, Cloisters Square Perth Western Australia 6850
Tel+ 61 8 9220 9830 Fax+ 61 8 9220 9820 ABN25 009 069 005 ASXCode SSN
COMMENTARY
Frack operations have commenced on the Ironbank 7 well but have been hampered by adverse weather conditions. This frack is expected to be followed by Ironbank 6 and Billabong. A work over rig is currently over Billabong running the frack string.
#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 oil
BOE: Barrels of oil equivalent (gas converted at its heating value) BOPD: Barrels of oil per day
MCF: Thousand cubic feet
BOEPD: Barrels of oil equivalent per day
NA: Not available
APD: Application for Permit to Drill
IP Rate: Gross first 24 hour oil rate
Current rate BOPD: Barrels of Oil per Day
Cum to Date: Cumulative gross BO
Samson Oil & Gas USA
1331, 17thStreet, Suite 710, Denver Colorado 80202 Tel + 1 303 295 0344 Fax + 1 303 295 1961
Samson Oil & Gas Limited
Level 16, AMP Building, 140 St Georges Terrace, Perth Western Australia 6000 / PO Box 7654, Cloisters Square Perth Western Australia 6850
Tel+ 61 8 9220 9830 Fax+ 61 8 9220 9820 ABN25 009 069 005 ASXCode SSN
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%
|
RAINBOW PROJECT, WILLIAMS COUNTY, NORTH DAKOTA Gladys 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.
Lateral length
|
Objective
|
Status
|
IP rate
BOPD
|
Avg. Rate
BOPD#
|
Cum to Date
BO
|
Gladys 1-
20H
|
9,558 ft.
|
Middle
Bakken
|
SI
|
717
|
NA
|
34,054
|
Samson Oil & Gas USA
1331, 17thStreet, Suite 710, Denver Colorado 80202 Tel + 1 303 295 0344 Fax + 1 303 295 1961
Samson Oil & Gas Limited
Level 16, AMP Building, 140 St Georges Terrace, Perth Western Australia 6000 / PO Box 7654, Cloisters Square Perth Western Australia 6850
Tel+ 61 8 9220 9830 Fax+ 61 8 9220 9820 ABN25 009 069 005 ASXCode SSN
EXPIRY OF UNLISTED OPTIONS
The following unlisted options have expired, unexercised on 31 December 2014.
Exercise Price
|
Expiry
|
Number of options
|
$0.08
|
31 December 2014
|
60,500,000
|
$0.164
|
31 December 2014
|
4,000,000
|
Following the expiry of the above mentioned unlisted options, the Company's capital structure is as follows:
Class of securities Number of options
Listed
|
Ordinary fully paid shares
|
2,837,782,022
|
Options ($0.038 exp. 31 March 2017)
|
229,634,519
|
Unlisted
|
Options ($0.155 expiring 31 October 2015)
|
4,000,000
|
Options ($0.039 expiring 30 November 2017)
|
4,000,000
|
Options ($0.033 expiring 30 April 2018)
|
87,033,246
|
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$0.18 per ADS on January 12th,
2014, the Company has a current market capitalization of approximately US$26.1 million (the options have been valued at an exchange rate of 0.8244). Correspondingly, based on the ASX closing price of A$0.014 for ordinary shares and a closing price of A$0.003 for the 2017 options, on January 12th, 2014, the Company has a current market capitalization of approximately A$40.4
million.
SAMSON OIL & GAS LIMITED
TERRY BARR
Managing Director
For further information please contact, Terry Barr, CEO on
303 296 3994 (US office) or
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 USA
1331, 17thStreet, Suite 710, Denver Colorado 80202 Tel + 1 303 295 0344 Fax + 1 303 295 1961
Samson Oil & Gas Limited
Level 16, AMP Building, 140 St Georges Terrace, Perth Western Australia 6000 / PO Box 7654, Cloisters Square Perth Western Australia 6850
Tel+ 61 8 9220 9830 Fax+ 61 8 9220 9820 ABN25 009 069 005 ASXCode SSN