SSN - Samson Oil & Gas

[Slipperz]

Re: SSN - Samson Exploration

US stayed at 1.33 which is about .071 they still see a little more value then oz at the moment

SSN is now in a consolidation phase while we wait on news.

I'm struggling with the chart but I've got a tale of two cities pre and post land sale that holds up to scrutiny

Looking at the buyer depth this morning we may even hit that trendline at some point in next few days before we bounce.

 

[Slipperz]

Re: SSN - Samson Exploration

The play is heating up!

Interesting read on water requirements for the drillers making water an issue...
http://www.circleofblue.org/waternews/2010/world/scarce-water-is-no-limit-yet-to-north-dakota-oil-shale-boom/

 

[Slipperz]

Re: SSN - Samson Exploration

Overnight sellers in control in the US driving the price to 1.30 per ADR which at current cross rates is 0.694 AUD per share probably due to the falling price of oil.

Chartwise we are now on support and failure today might signal a retrace to test 0.61 support.



Still no news on the fraccing of Gary #1-24H or the spudding of Earl #1-13H

A nice 2000 barrel a day gusher might help the cause at this stage.

Tuesday should see the secong closing of the land sale and hopefully put another 10 million in the kitty

The annual report is due out soon and should make for interesting reading as well!

 

[haddadf]

Re: SSN - Samson Exploration

Slipperz, please don't say gusher. Flow rate is more appropriate.

I experienced a "gusher" or out of control well for over 2 weeks on another stock. It got really messy.

As you said next week will be interesting. With the sale news and maybe an update on the rescheduling of Gary, Rodney Frac and Spud of Earl.

Weekend is first....

Enjoy

 

[Slipperz]

Re: SSN - Samson Exploration

Slipperz, please don't say gusher. Flow rate is more appropriate.

I experienced a "gusher" or out of control well for over 2 weeks on another stock. It got really messy.

As you said next week will be interesting. With the sale news and maybe an update on the rescheduling of Gary, Rodney Frac and Spud of Earl.

Weekend is first....

Enjoy

Oops terminology fail. My bad. I was thinking more along the lines of extremely high flow rates rather than blow out!
:bonk:

 

[Slipperz]

Re: SSN - Samson Exploration

Slipperz, please don't say gusher. Flow rate is more appropriate.

I experienced a "gusher" or out of control well for over 2 weeks on another stock. It got really messy.

As you said next week will be interesting. With the sale news and maybe an update on the rescheduling of Gary, Rodney Frac and Spud of Earl.

Weekend is first....

Enjoy

Heres an interesting quote I pulled from an article on the play ...


"It just almost boggles the mind," the state's top oil and gas regulator told a veterans group in Minot on September 2. "It is not like the traditional oil and gas play." Just how different is illustrated by these statistic: Oil wells in the Bakken Shale are capable of producing 4,000 barrels a day or more, according to state figures. Just one in 100 wells drilled into the Bakken Shale fail to yield marketable quantities of oil or gas, according to industry executives.

News please!

 

[Slipperz]

Re: SSN - Samson Exploration

Just found a great article on the EUR rates in the Bakken shale and well costs.

http://www.oilandgasevaluationreport.com/tags/eur/

This is the chart that really pinpoints the value of improved drilling techniques over the past few years

According to this evaluation each well in the Bakken should have an ultimate recovery of 700 000 barrels ( seems very high to me ) at an extraction cost of $11.16 per barrel.


With the current price of oil at 75 a barrel less 11 dollars extraction cost I get 700k by 64 or 44.8 million dollars EUR per well!


This just seems like way too much? Or are we sitting on a goldmine here waiting to be drilled?

 

[berbouy]

Re: SSN - Samson Exploration

looks like the cat may be out of the bag-good detective work by a favourite poster has named chesapeake as the new name on some titles-if thats the case, this very large us company which has an agressive drilling attitude-should stand us in good stead for the future.perhaps upon next deposit of funds, the buyers name will be announced?if the niobrara is half as prolific as some numbers that are being mentioned, then the royalty aspect looks good.dyor

 

[Slipperz]

Re: SSN - Samson Exploration

Well if it is Chesapeake then we are in with the big boys!

Just had a quick read of their latest presentation http://www.chk.com/Investors/Documents/Latest_IR_Presentation.pdfand rationally enough they are moving away from natural gas and more into oil due to the low price for natural gas at the moment.




They own 133 rigs and will be keen to get them working on their newly acquired oil rich acreages one would think.

And given their specialisation in shale extraction they'll have their own frac crews as well.

It all makes total sense.

This just keeps getting better by the day!

Under the terms of the royalty deal for every 20 wells Chesapeake drill we get one for free, how sweet is that?

Mind you we'll have 70 million in the kitty by Tuesday so we should be plugging a fair few holes of our own.

Massive rerating imminent imho

 

[AngusSmart]

Re: SSN - Samson Exploration

Slipperz

Just a few questions, i am trying to find who their operator is?? i've looked thru a few well reports and keep coming across small problems..

Rodney

4.5” liner packer prematurely set approximately 1,300 feet short of its planned running depth. Therefore, the final 1,300 feet will be hydraulically fractured out the end of the liner

Gary

however in preparing for the second stage the isolation plug set prematurely above its planned setting depth. It is now required that the second stage isolation plug be drilled out using a coiled tubing unit before continuing the remainder of the fracture stimulation job.

are they also looking for a better driller/frac crew to come on board?? perhaps something like Aurora has with Hilcorp?

Re: on the 20 to 1 well business.. do they actually get a well.. or do they just receive the cash that would build a well?

I would like to put some money into another small risky oil explorer and would like another Aut.. but would like them to not have issues with the well's.

 

[Slipperz]

Re: SSN - Samson Exploration

Slipperz

Just a few questions, i am trying to find who their operator is?? i've looked thru a few well reports and keep coming across small problems..

Rodney


Gary


are they also looking for a better driller/frac crew to come on board?? perhaps something like Aurora has with Hilcorp?

Re: on the 20 to 1 well business.. do they actually get a well.. or do they just receive the cash that would build a well?

I would like to put some money into another small risky oil explorer and would like another Aut.. but would like them to not have issues with the well's.

Good question Angus Smart.

I went for a trawl through the past two quarterlies ( which makes for very happy reading I might add) and found this.


So there's our operator I guess. http://www.zavanna.com/company.html

Confusingly this zavanna mob seem to be more into the whole discovery side of things than drilling looking at the website?

Perhaps they subcontract drilling services?

I'm going to flick the company an email and see what response I get and ask for their permission to post a reply here and see what they say.

it is of some concern we have had problems but hopefully they can be overcome.

The biggest problem I can see is we are in the middle of a "oilrush" and it's taking so long to get frac crews on site due to the amount of drilling activity going on in the play.

As to your question re the free well I was making a comparison more than anything to the fact we are on a 4.8% royalty stream deal with the purchaser of the Goshen County acreages ( rumourtrage is pointing to Chesapeake at this stage ).

The reality is we will probably receive production based quarterly royalty cheques, which will add a new level of interest to the quarterlies for sure!

I got onboard AUT when they signed up with Hillcorp to freecarry them on a ten well program and bagged it up and got out in six months after they stalled on the capraising.

SSN has the same if not greater potential here and I won't be getting out at 14 cents, this company is going to be worth many multiples of that.

They have 70 million in cash to drill ten wells on their own to prove up their acreages and generate revenue from what is recognised as perhaps the most productive oil field in the continental united states.

They have several viable prospects other than the bakken and noibrara to follow on with.

And a major (possibly chesapeake)is going to start rolling rigs out onto 24000 acres of ours and paying us 5% of everything they drill.

If you want to get in I'd do it soon. Another 10 million going in the bank this week and possibly an ann of the buyer to market. If it is Chesapeake watch the reaction in the US (btw the US markets are trading at a premium to us 0.0683 at current cross rates)

Very exciting times for SSN holders

 

[Slipperz]

Re: SSN - Samson Exploration

Oh and one more point I feel worth making regarding how this company is developing.




Revenues for the last quarter up nearly 100% from 1.4 to 2.6 million even after taking a quarter million dollar hit from the falling price of natural gas in the US.

How many other companies are putting in that sort of revenue growth on the ASX?

Next month there'll be another 70 million LOL

And to put the current shareprice in perspective the Goshen County land sale first closure was for
19 451 acres at a price of 63.7 million USD or 3 274 USD per acre

Given SSN has the rights to a total of 40 240 acres that values the entire tenement at 131 781 810 USD (excluding any recent increases in acreage value due to ongoing derisking through drilling)

At current cross rates that translates to 140 807 579 AUD ( and 67 cents lol ).

With total shares on issue of 1 663 905 592 that gives us a valuation of 0.0846 cents per share excluding royalties ... just for the Goshen County tenement!

 

[AngusSmart]

Re: SSN - Samson Exploration

Wow cheers for all that, well i am either looking into this one, or SEA
the later seems to be a little better on paper with debt etc and in terms to their operators however their interest in some of the wells is very small tho they hold alot of acreage in 3 areas of around 150,000..

will keep a watchful eye on both and see how it goes. ssn's growth over them few months is pretty damn good.

lets hope they can get a good operator on board and start putting many more holes in the ground quickly!

 

[kash]

Re: SSN - Samson Exploration

SAMSON OIL & GAS ADVISORY ON NORTH STOCKYARD OPERATIONS

Denver 1800 hours September 19th, 2010, Perth 0800 hours, September 20th, 2010

Samson Oil & Gas Limited (ASX: SSN, NYSE AMEX: SSN) provides the following operational
advice on wells within the North Stockyard Oilfield.

Gary #1-24H well (37% working interest).

Fracture stimulation operations re-commenced on Thursday, September 16th on the Gary #1-24H
well (37% working interest). As of Sunday afternoon September 19th, stages 2 through 8 have

been pumped and the program should be finished by the middle of the week at which time the well
will be prepared for production.

Earl #1-13H well (32.2% working interest).

The next Bakken Formation well to be drilled in the North Stockyard Field, the Earl 1-13H, is
expected to spud on or about September 25th.

Sound positive for gary

 

[UBIQUITOUS]

Re: SSN - Samson Exploration

Nice to see it bouncing of a solid support line. I'm in as both the fundamentals and technicals stack up very nicely. Resistance at 8c.

 

[Slipperz]

Re: SSN - Samson Exploration

Nice to see it bouncing of a solid support line. I'm in as both the fundamentals and technicals stack up very nicely. Resistance at 8c.

Yes 8 cents is our next big hurdle.

By the end of this week we could be giving it a nudge if the news is good re the next settlement on the Goshen tenement.

The wait for ip figures from gary #1-24H has been excruciating after the delays in fraccing, here's hoping we are up in the high 3000's and the news is announced before the spud of earl #1-13H

 

[kash]

Re: SSN - Samson Exploration

Up o'night. 1.38. Hopefully we follow suit. News from gary is sounding very positive.

 

[Slipperz]

Re: SSN - Samson Exploration

Up o'night. 1.38. Hopefully we follow suit. News from gary is sounding very positive.

Indeed. Now trading at 0.0723 equivalent in the US.

The chart looks spot on for a break through 0.07 resistance and back to the uptrend.





News of the second land sale closing could come anytime this week....

 

[UBIQUITOUS]

Re: SSN - Samson Exploration

I just cannot believe that this company with a market cap of about $110m, has cash close to $75m and only $10m of debt.

I read in one of the company presentations that the Hawk Springs project has a NPV of $799m! A Net PRESENT value of 10x the current market cap!

The market's valuation of this company which is producing oil and increasing revenues, is simply absurd

 

[skivvy]

Re: SSN - Samson Exploration

Samson in to a trading halt pending an announcement regarding the Goshen County Acreage Sale.:dunno: