SSN - Samson Oil & Gas

[skivvy]

Re: SSN - Samson Exploration

Well this annoucnement could be good or bad news, a real pivot point? No trading halt was introduced for any of the previous Goshen transaction news, so to me this is something more, either there is a further delay with the closing or possibly an announcement regarding the buyer or maybe a possible Joint Venture announcement. Another rollercoaster couple of days ahead......

 

[UBIQUITOUS]

Re: SSN - Samson Exploration

Well this annoucnement could be good or bad news, a real pivot point? No trading halt was introduced for any of the previous Goshen transaction news, so to me this is something more, either there is a further delay with the closing or possibly an announcement regarding the buyer or maybe a possible Joint Venture announcement. Another rollercoaster couple of days ahead......

Skivvy, I believe it will be massive news. As Chesapeake are the buyer, this will make the market sit up.

 

[Slipperz]

Re: SSN - Samson Exploration

We're all speculating on what is impending here but surely it must pertain to more than the last 10 million of closing.

The 63 million close didn't warrant a TH so why would 10?

I'm thinking you might be right UBIQUITIOUS. JV news maybe or more acreage sale?

Maybe whoever the buyer is wants more or even as is being hotly debated over at the neighbours a complete takeover is on the cards.

 

[Slipperz]

Re: SSN - Samson Exploration

There we have it. Another 6.3 million in the kitty and hopefully another 4.1 million to come next week.

TH probably due to Chesapeake being brought into the open as the buyer.

A few more short termers heading for the exits but the volume was minimal.

I was surprised to see SSN down in the US after the raging bull session overnight but it is still trading at 0.71 equivalent per share or 0.74 on the cross.

We should have some IP figures from Gary #1-24H early this week that might wake up the volumes a bit.



Just looking at the buying that went on in June and July and the selling since there's plenty of samsonites keeping their powder dry.

The current sell depth of 18 million won't look like much if we have a high volume day of 100 million or so.

Looking forward to next weeks news!

 

[kash]

Re: SSN - Samson Exploration

One producing
During the course of drilling out the plugs, the maximum daily rate, averaged over a 6 hour period,
was 2,463 barrels per day. Over this same period, the average gas rate of 1.9 MMCFPD was
measured. This equates to 2,780 BOEPD. Based on our experience with other Bakken wells,
these rates will fluctuate over the next few weeks and then decline. Over the last 24 hours the well
produced 1,636 BOEPD.

Next one 17days to drill
Samson Oil & Gas Limited (ASX: SSN, NYSE AMEX: SSN) advises that the Nabors 688 rig
spudded the Earl #1-13H well at 16:00 hours MDT on September 28th. The Earl #1-13H well is
located in Township 154N, Range 99W, Section 13 in Williams County, North Dakota. The well will
test the prolific middle member of the Mississippian Bakken Formation in the Williston Basin using
the same design that was successfully implemented on the Gary #1-24H well. This will be
Samson’s fifth Bakken well in the North Stockyard Field. The Earl #1-13H well will be drilled as a
5,500ft. horizontal well with an anticipated total measured depth of 17,000 feet. Based on the
previous wells drilled by the operator, the Earl #1-13H is expected to take approximately 17 days to
drill.

 

[skivvy]

Re: SSN - Samson Exploration

Good news today and more to come IMO. The trading halt was a no event and I am a little puzzled as to why announcing the buyer (Chesapeake) and the change to the royalties required a halt. Oh well at least it wasnt bad news and little Samson will march on into 2011.

 

[Slipperz]

Re: SSN - Samson Exploration



Technically we're looking a little shaky here.

Sellers seem to be in control at the moment albeit on tiny volumes.

Now the landsale is nearly completed the next phase of exploration in the DJ basin does carry risk until we nail down some flow rates.

Nearly all the exploration wells in the area seem to be tight holes as the Wyoming Oil and Gas Conservation Commission unlike the Texas Railroad Commission doesn't require IP disclosures and production figures until 6 months after completion.

EOG has 13 wells underway and they are all tight holes. That's a lot of simultaneous drilling in one area. They want to see how much oil is there and buy all the acreage they can lay their hands on before the news gets out.

Courtesy of the dalek at HC ....

"50 miles north of Cheyenne is our territory, most advanced being EOGs cluster of wells.

Our wells are around Township 22-24 and Range 63-64

Here are the EOG wells just below us...I count 13!


Township 19 Range 65
Api Company Well Name Qtr-Qtr Location Footage Received

Confidential EOG RESOURCES INC POLAR BEAR 07-05 H SE SE 5 19N 65W 510 FSL and 662 FEL .
Confidential EOG RESOURCES INC POLAR BEAR 08-05 H SW SW 5 19N 65W 511 FSL and 642 FWL .
49-021-20592 EOG RESOURCES INC TEDDY 3-09H SE NE 9 19N 65W 2240 FNL and 400 FEL 07/08/2010
Confidential EOG RESOURCES INC LITTLE BEAR 14-16H SE SE 16 19N 65W 810 FSL and 660 FEL .
Confidential EOG RESOURCES INC LITTLE BEAR 15-16H SW SW 16 19N 65W 810 FSL and 810 FWL .

Township 20 Range 64
Api Company Well Name Qtr-Qtr Location Footage Received
Confidential EOG RESOURCES INC KODIAK 10-18H SE SE 18 20N 64W 560 FSL and 660 FEL .
Confidential EOG RESOURCES INC KODIAK 11-18H SW SW 18 20N 64W 560 FSL and 810 FWL .
Confidential EOG RESOURCES INC BLACK BEAR 25-08H NW NW 8 20N 65W 510 FNL and 660 FWL .
Confidential EOG RESOURCES INC BLACK BEAR 24-08H SW SW 8 20N 65W 660 FSL and 660 FWL .
49-031-20054 EOG RESOURCES INC KLONDIKE 26-17M SE NW 17 20N 65W 1980 FNL and 2640 FWL 03/18/2010
Confidential EOG RESOURCES INC KLONDIKE 12-17H SE SE 17 20N 65W 660 FSL and 660 FEL .
Confidential EOG RESOURCES INC KLONDIKE 13-17H SW SW 17 20N 65W 660 FSL and 660 FWL .
Confidential EOG RESOURCES INC BRUIN 23-20H NW NW 20 20N 65W 510 FNL and 660 FWL .
Confidential EOG RESOURCES INC BRUIN 22-20H SW SW 20 20N 65W 760 FSL and 661 FWL .
Confidential EOG RESOURCES INC CINNAMON 19-26H SE SE 26 20N 65W 660 FSL and 510 FEL .
Confidential EOG RESOURCES INC CINNAMON 18-26H SW SW 26 20N 65W 510 FSL and 760 FWL .
Confidential EOG RESOURCES INC BROWN BEAR 21-27 H SE SE 27 20N 65W 660 FSL and 660 FEL .
Confidential EOG RESOURCES INC BROWN BEAR 20-27H SW SW 27 20N 65W 510 FSL and 660 FWL .
Confidential EOG RESOURCES INC SILVERTIP 04-34 H NE NE 34 20N 65W 561 FNL and 561 FEL .
Confidential EOG RESOURCES INC PANDA 17-35H NE NE 35 20N 65W 560 FNL and 560 FEL .
Confidential EOG RESOURCES INC ROBINSON 1-36 NE SW 36 20N 97W 1426 FSL and 2516 FEL .
49-023-22424 EOG RESOURCES INC KOMBUCHA 2-02 NE SE 2 20N 113W 2178 FSL and 470 FEL 11/05/2009 "

I actually thought EOG was our buyer due to the nearology and alluded to this in earlier posts.

Another point I made earlier was that once our buyer did complete the sale they would most likely be big enough to roll out a rapid and extensive drilling campaign.

Chesapeake is doing exactly that http://www.torringtontelegram.com/v2_news_articles.php?heading=0&page=34&story_id=5355

The haven't even finalised completely and the rigs are rolling! We should start to see a tidy 3.8% royalty stream in less than two months and at this early stage we're looking at 4 wells or a handy 15.2% WI freecarry on a well. Talk about quick money! I wonder how quickly Chesapeake will move to full field development?

In the short term we have two more wells to come in in the Bakken and the GC#2 well is getting a workover frac soon ( September delays?)to test the bone spring formation....

STATE GC#2 (Working Interest 37%, Net Revenue Interest 28.3%)

When the State GC #2 well was logged three potential pay intervals were determined as follows:

Lower part of the Lower Leonard (54 feet of perforated pay);

Upper part of the Lower Leonard (39 feet of perforated pay); and

Bone Springs Formation (189 feet of potential pay requiring evaluation)

" The Bone Spring Formation is an established oil producing horizon in the area and as an example a well 2 ½ miles to the northwest of the State GC #2 well has produced 52,805 barrels of oil and 283,497,000 cubic feet of gas over a three year period from this horizon."

Plenty of news to come and for the big picture long term we have 3D seismic getting done on the DJ basin before exploratory wells in Q1 2011.


Looking good IMHO and the rising price of oil is only adding value in advance as we prove up our reserves.

 

[Donga]

Re: SSN - Samson Exploration

Very surprised the market didn't react to Chesapeake as the buyer! Incredible and worth buying more as the traders drift away into AVB and others. Gonna keep mine for the long haul, at least 18 months and halve the tax on gains.

 

[Slipperz]

Re: SSN - Samson Exploration

Very surprised the market didn't react to Chesapeake as the buyer! Incredible and worth buying more as the traders drift away into AVB and others. Gonna keep mine for the long haul, at least 18 months and halve the tax on gains.

Likewise. I'm going to be keeping a very close eye on Chesapeake from here on in as well. They might not be JV partners but they're drilling like all get out next door to our (presumably prime)acreages and paying us a royalty stream. Interesting to note we are now in bed with "the most active driller of new wells in the US"

Not that the market seems to ascribe any sort of value to the association at this stage.

Investor presentation coming up in the US soon that might shed more light on their plans in the DJ basin, http://www.marketwatch.com/story/chesapeake-energy-corporation-to-host-2010-institutional-investor-and-analyst-meeting-2010-09-29?reflink=MW_news_stmp

 

[UBIQUITOUS]

Re: SSN - Samson Exploration

Likewise. I'm going to be keeping a very close eye on Chesapeake from here on in as well. They might not be JV partners but they're drilling like all get out next door to our (presumably prime)acreages and paying us a royalty stream. Interesting to note we are now in bed with "the most active driller of new wells in the US"

Not that the market seems to ascribe any sort of value to the association at this stage.

Investor presentation coming up in the US soon that might shed more light on their plans in the DJ basin, http://www.marketwatch.com/story/chesapeake-energy-corporation-to-host-2010-institutional-investor-and-analyst-meeting-2010-09-29?reflink=MW_news_stmp

Unfortunately it is a game of newsflows and comparative valuations. This is why SSN is suffering at the moment. I'm far more weighted in SEA until both market caps are similar. Currently SSN's is $134m. SEA's is $96m.

 

[Slipperz]

Re: SSN - Samson Exploration

Speaking of valuation if per chance our acreages in Goshen County DJ Basin turn out to be prolific oil producing ( or the ones we sold next door to Cheseapeake for that matter) surely that would rerate their value.

Given the recent sale was pretty much risked at 3 700 dollars an acre or so the numbers I have seen for prime derisked oil acreages are around the 12 000 dollar per acre mark?

We retain 17 000 acres for 3D seismic while Chesapeake drills away next door and what if the oil starts flowing??????

17 000 x 12 000 = $204 000 000. Roughly a quarter of Terry Barrs full field evluation.

Not bad at a pinch though is it!

 

[Slipperz]

Re: SSN - Samson Exploration

Been putting in a bit of research time today being a day off. Google alerts helps as well!

http://blogs.oilandgasinvestor.com/blog/2010/10/03/it-really-is-an-oil-shale%E2%80%94why-the-niobrara-is-not-your-bakken/

This article refers to the untested nature of the play in the DJ basin ....but....there have been 100K producing wells that were unfracced in the silo field in the 80's

Had a look at the QEP site and their presentation to Deutsche in September They have one well underway as we speak. The DJ basin well map looks a .bit sparse compared to say the eagleford or many of the other shale plays in the US, other than EOG's jake which got the whole landrush started.

 

[Slipperz]

Re: SSN - Samson Exploration

Oopsie. Forget to check our most recent presentation at enercom in New York on September 23rd.

Two more fresh completions on the map...

St. Mary Land & Exploration Atlas #1‐19H ....IP = 1200‐1500 BOPD

Noble Gemini well Avg. prod. = 1100 BOPD 60 Mbo in 60 days. That's a remarkable 60 day figure really. Shows minimal decline. Very healthy well economics to recoup (60 000x 81.5) $4.89 million in two months with an EUR of 413 000 barrels per well.

An excerpt from an analysts meeting released by Noble June 02, 2010 states "The Company has built a premier acreage position in the central DJ Basin of over 750,000 net acres and estimates total net unrisked potential of over 1 BBoe (360 MMBoe risked) in the emerging horizontal Niobrara play. Noble Energy's early horizontal Niobrara drilling results within Wattenberg have been very positive and include the Gemini well, which represents the industry's best well to date in the field. Results from the Company's first four horizontal Niobrara wells in Wattenberg indicate strong projected returns with early estimates of ultimate recoveries being approximately seven times those of a typical vertical Wattenberg well.




The more I dig the happier I get
http://www.aapg.org/explorer/2010/06jun/rockies0610.cfm

Some midstream pipeline news...http://www.pipelineandgastechnology.com/Construction/CurrentProjects/item65141.php

AHA! A backhand completion report from an engineer from Andarko

“There have been times when we had to shut in wells up to a week at a time because the area lacked sufficient refining capacity,” says Anadarko’s facilities engineer Joe Aucoin, from his office at the White Cliffs’ connect near Plattesville. “It’s huge for us.”

Nice to see some green on screen again today. Plenty more to come in the next few quarters as well!

 

[Slipperz]

Re: SSN - Samson Exploration

Two results from EOG, they aren't all tight holes

EOG Resources Comments On Niobrara Shale - Second Quarter Of 2010
EOG Resources (EOG) made some comments on the Niobrara Shale during the company’s second quarter earnings conference call held on August 6, 2010. The company has a 400,000 net acre position in the Niobrara Shale and is planning to focusing on a 100,000 net acre section to develop.

“We've completed two additional wells, the Critter Creek #02-03H and Critter Creek #04-09H, and they're producing at managed restricted rates of 570 and 600 barrels of oil per day, respectively. We have 100% working interest here. We have four rigs running in this play. But as we've previously stated, we want to observe production from these and earlier wells until year end, before we make a reserve estimate because the reservoir is heavily fractured.”

“The Critter Creek wells are south and west of our Jake and Elmer wells that we talked about previously and a little bit north of our Red Poll wells. So they're all bunched together in what we call the Hereford prospect, that 100,000 acres of our total of 400,000 acres. So they're on 640 spacing currently.”

“The Jake and Elmer wells appeared to be kind of stabilizing each at about 150 barrels of oil per day. And of course, remember that the first six months, they had pretty significant production, I think, 50,000 barrels or so in the first six months or whatever.”

News just in from Continental.

Continental Resources Comments On Niobrara Potential
Continental Resources (CLR) held a conference call on August 5, 2010, and made comments on its operations in the Niobrara Shale. The company is accumulating acreage in the Niobrara Shale and now holds 60,000 net acres across Wyoming and Colorado.

“The Niobrara is a huge crude oil resource play. It covers over 3 million acres and has a potential to produce more than 2 billion barrels of oil. We’ve established a strategic position in the play, leasing almost 60,000 net acres and continue to acquire more. We hold acreage in Platt, Laramie, and Goshen Counties in Wyoming and Weld County in Colorado.”

“Our leases are in proximity to several of the most interesting test wells drilled to date. EOG Resources kicked off recent search and drilling with five horizontal wells including the Jake 2-1H, which had an initial production rate of 1,558 barrels of oil equivalent per day and an average of 555 barrels oil per day over its first 90 days.”

“Noble Energy has announced four wells that produced an average of 585 barrels per day of oil over their first 60 days production, including one that averaged 1,000 barrels oil per day. Niobrara development is currently on 640 spacing.”

“We plan to spot our first Niobrara well in the fourth quarter. Continental’s entry into the Niobrara is a natural strategic fit with our expertise and experience in horizontal oil resource plays.”

 

[Slipperz]

Re: SSN - Samson Exploration

Good to see we have our plan of attack announced. Reads pretty well to me. http://www.businesswire.com/news/home/20101007007046/en/Samson-Oil-Gas-Advises-Strategic-Growth-Plan

Markets kicked up nicely overnight in the states on the news. Meanwhile we continue to drift lower here in AUS

Ah well I have the time for this one to play out. Quietly confident of more than a few bags here eventually

In other news up in the Bakken play the players are getting together to talk infrastructure and look who's at the table. Seems Maquaries interest in SSN is translating further afield.....http://www.marketwire.com/press-release/Bakken-Oil-Players-to-Gather-at-Inaugural-Event-1331651.htm

 

[grants]

Re: SSN - Samson Exploration

I read the report with interest. I bought a few on the fact it didn't move the market much. The volume was up but the price remained pretty steady. Wonder who was selling and their reasoning behind it?

 

[Slipperz]

Re: SSN - Samson Exploration

I read the report with interest. I bought a few on the fact it didn't move the market much. The volume was up but the price remained pretty steady. Wonder who was selling and their reasoning behind it?

There has been no shortage of sellers of recent. SSN has had a pretty stellar run and I guess some are locking in their profits and moving on after the land sale.

Once that phase is cleared out we'll start building towards the Hawk Springs development.


Fridays news has set the timetable and budget. IMHO Samson has a pretty exciting few months ahead and it's great to be part of the journey.

 

[kash]

Re: SSN - Samson Exploration

Some nice flow of ann now.
NORTH STOCKYARD OILFIELD

Earl #1-13H (32% working interest)

Samson Oil & Gas Limited (ASX: SSN, NYSE AMEX: SSN) advises that the Earl #1-13H well in
Williams County, North Dakota, recorded strong oil and gas shows when it landed in the middle
member of the Mississippian Bakken Formation, at a total vertical depth of 11,310 feet, on October
11th. Casing will now be run into the hole and cemented. The horizontal portion of the well will
then be drilled for approximately another 5,500 feet within the middle member of the Bakken
Formation. This horizontal production hole will be then cased and fracture stimulated.

The Earl #1-13H well is located in Township 154N, Range 99W, Section 13 in Williams County,
North Dakota. The Earl #1-13H well is Samson’s fifth Bakken well in the North Stockyard Field.
Based on the previous wells drilled by the operator, the Earl #1-13H, which spudded on September
28, is expected to take approximately 17 days to drill.

Rodney #1-14H (27% working interest)

Samson has been advised that the fracture stimulation of the Rodney #1-14H is tentatively
th
scheduled to begin on November 5 .

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

The Gary #1-24H has been on production without artificial lift since September 23rd and has

averaged 955 bopd and 1,777 Mscfd of gas over a 17 day period. Cumulative production for this
well is 16,300 barrels of oil which has shown an improvement over the Gene well which produced
11,700 barrels of oil in the same period.
Plus 3d to start by end of oct on another site.

 

[Slipperz]

Re: SSN - Samson Exploration

Some nice flow of ann now.
NORTH STOCKYARD OILFIELD

Earl #1-13H (32% working interest)

Samson Oil & Gas Limited (ASX: SSN, NYSE AMEX: SSN) advises that the Earl #1-13H well in
Williams County, North Dakota, recorded strong oil and gas shows when it landed in the middle
member of the Mississippian Bakken Formation, at a total vertical depth of 11,310 feet, on October
11th. Casing will now be run into the hole and cemented. The horizontal portion of the well will
then be drilled for approximately another 5,500 feet within the middle member of the Bakken
Formation. This horizontal production hole will be then cased and fracture stimulated.

The Earl #1-13H well is located in Township 154N, Range 99W, Section 13 in Williams County,
North Dakota. The Earl #1-13H well is Samson’s fifth Bakken well in the North Stockyard Field.
Based on the previous wells drilled by the operator, the Earl #1-13H, which spudded on September
28, is expected to take approximately 17 days to drill.

Rodney #1-14H (27% working interest)

Samson has been advised that the fracture stimulation of the Rodney #1-14H is tentatively
th
scheduled to begin on November 5 .

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

The Gary #1-24H has been on production without artificial lift since September 23rd and has

averaged 955 bopd and 1,777 Mscfd of gas over a 17 day period. Cumulative production for this
well is 16,300 barrels of oil which has shown an improvement over the Gene well which produced
11,700 barrels of oil in the same period.
Plus 3d to start by end of oct on another site.

A great ann! I am really looking forward to the quarterly in a couple of weeks. So much more to happen in the next few months it's incredible.

Chartwise it looks as if we have hit the bottom of our recent trading range and I wouldn't be at all surprised to see a bit of positive momentum returning to the SP.

 

[haddadf]

Re: SSN - Samson Exploration

Here is an update of things to come with SSN.

EARLY OCTOBER
Final closing of Goshen transaction
"Samson anticipates receiving net consideration of at least US$ 2.2 million at that closing and considers it likely that it will receive another US$ 1.9 million as a result of curing various title defects."

OCTOBER 14TH/15TH
Earl #1-13H Drill Completion - 32% working interest
"recorded strong oil and gas shows"

21ST OCTOBER
Bakken hearing to approve 320acre spacing
"Because Samson believes that the field will ultimately be approved for development on 320 acres, it is likely that there will be an additional four drilling locations."

https://www.dmr.nd.gov/oilgas/
Click on "hearing dockets on the top left handside.


OCT 30TH
Quarterly due Highlights to look for include the ramp up of oil sales from new Bakken wells Gene and Gary.

2ND NOVEMBER
North Dakota upcoming state land sale/auctions
http://www.land.nd.gov
Then click on minerals management

3RD NOVEMBER
Wyoming upcoming state land sale/auctions
http://slf-web.state.wy.us/mineral/ogauctions.aspx

5TH NOVEMBER
Rodney #1-14H (27% working interest)
"Samson has been advised that the fracture stimulation of the Rodney #1-14H is tentatively scheduled to begin on November 5th."

NOVEMBER
New Mexico - The bone Spring Formation in State GC#2 well will be fracture-stimulated in September. (No News on this one for a while)

The Black Creek Drilling Company to turnkey drill the Diamonback prospect in Jefferson County, Texas in late October.

DURING FALL
1.The farm down of 2 Niobrara wells with NEW JV partner and 3D seismic

2.Seeking buyers for Rockys gas asset sale Jonah/ Lookout Wash etc /Sale announcement.

3.Announcement on possible new Bakken aquisition

DECEMBER
1.Cheapstake drilling results in recently purchased acreage.

2.90 day production reports on GARY (after frac)

3.SPUD Harstad #2-15H

EARLY 2011
1. The 3-D seismic data is expected to be available for interpretation in the first quarter of 2011

2.Plans to drill 2 wells in remaining Niobrara acreage (50% with NEW JV partner - to be announced)

3.Re-entry of London Flats well (50%)

4.90 day production reports on EARL and RODNEY (after frac)

5. Plans to test the three fork formation in the Bakken lease.

MAY 2011
DEBT FREE

JUNE 2011...on
2 drilling rigs expected on Niobrara acreage plan to drill 2 wells per month for remainder of year = 12 x wells at 50% with JV partner Mountain Energy