Samson Oil & Gas Limited (ASX: SSN) (NYSE AMEX: SSN) provides advice on its current projects.
ROOSEVELT PROJECT, ROOSEVELT COUNTY, MONTANA
Gretel II 12KA 3 #1-30H, (SSN 100%, subject to a 33.34% backin right)
The Gretel II fracture stimulation of the Bakken Formation was successfully completed on March 28th utilizing the sliding sleeve frac method. 1.7 million pounds of proppant was pumped into 20 stages. This represents a 65% increase in the amount of proppant pumped into the formation as compared to the amount used in the Australia II well. The larger volume of proppant pumped was enabled because the reservoir quality was better and was able to accept larger volumes of proppant because of lower treating pressures than that experienced in Australia II. Some design modifications were also used based on the experience gained in Australia II. Two fracture stages were abandoned after a frac plug was set in the vertical part of the well. This plug and the perforating gun will be recovered when the well is worked over next week. This operation will drill the 19 ball drop valves. The well commenced flowing back at a rate of 1440 BFPD (all frac water) on Wednesday (March 28th) evening.
Australia II 12KA 6, #1-29H, (SSN 100%, subject to a 33.34% back-in right)
The work-over rig successfully retrieved the stuck perforation gun out of the wellbore and is currently drilling out the remaining frac plugs. Following this clean out operation, a production string will be run to prepare the well for the rod pumping equipment.
Abercrombie 1-10H (SSN 0.75%)
The Abercrombie well is currently waiting to be fracked by the operator. The frac job will consist of pumping approximately 2.9 million pounds of proppant into 29 stages. Samson and its partner FPEC have elected into this well to the extent of a combined 1.125% equity. Of this, Samson has a 2/3rds interest, or 0.75%. The Samson-FPEC interest derives from leases that FPEC and Samson own at the northern extent of the spacing unit.
HAWK SPRINGS PROJECT, GOSHEN COUNTY, WYOMING
Defender US33 #2-29H, (SSN 37.5% working interest)
Since the last operational advisory, the oil cut on the Defender well has increased from 54% to 80%, but the total fluid being recovered decreased and has resulted in an average production of approximately 100 BOPD and 25 BWPD over the last 10 days. Since the total fluid rate has decreased and the fluid level remains high in the annulus, a new sheave will be installed today to increase the stroke rate of the pump and thus produce more fluid
Spirit of America US34 #2-29, (SSN up to 100% working interest)
The re-drill of the Spirit of America US34 #1-29 well is anticipated to occur by mid-April with Frontier Rig 11. This well will test two conventional targets in the Permian and Pennsylvanian aged rocks to a depth of approximately 11,000 feet
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 AMEX under the symbol "SSN". Each ADS represents 20 fully paid Ordinary Shares of Samson. Samson has a total of 1,996 million ordinary shares issued and outstanding (including 238 million options exercisable at AUD 1.5 cents), which would be the equivalent of 99.8 million ADSs. Accordingly, based on the NYSE AMEX closing price of US$2.40 per ADS on March 29th, 2012 the Company has a current market capitalization of approximately US$236 million. Correspondingly, based on the ASX closing price of A$0.115 on March 29th, 2012, the Company has a current market capitalization of A$225 million. The options have been valued at their closing price of A$0.10 on March 29th, 2012 and translated to US$ at the current exchange of 1.0371 for purposes of inclusion in the US$ market capitalization calculation.
Source: Business Wire
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