Samson Oil & Gas (SSN)

Shares / Stock Code

SSN

Stock Exchange / Sharemarket

Australian Securities Exchange

Samson Oil & Gas (SSN) has all of its petroleum assets in the US, mainly in Wyoming, but there are projects in North Dakota, New Mexico, Oklahoma and Montana. Estimated productions for 3Q07 were 0.3Bcf gas and 7,302bbl oil. Production is from a number of fields. The WI ranges from 18.2% for Lookout Wash Field in Wyoming to a 34.5% in North Stockyard Project in North Dakota. SSN has a WI of 100% in Stage Coach East and 78% in Rock Springs, both in Wyoming. A listing on the American Exchange is delayed.

This was a cash box company, with investments now transformed into a junior petroleum company with an active exploration program. There is significant potential to grow earnings and cash flow. The investment thesis was initially driven by high US gas prices. The last reserve report was in 01/09/2006 when SSN reported 2-P reserves of 499,000Bbl oil and 38,723mmcf gas. SSN has a high exposure to the Baxter Shale, where it will use 3D seismic analysis to identify fracture systems in a tight field. Company was listed on Australian stock market (ASX) on 17 April, 1980.

Samson Oil & Gas acquired a 100% working interest in the Hawk Springs coal bed methane project and a 50% working interest in the Gold Coast coal bed methane project, both located in Wyoming, USA. SSN also acquired a 100% working interest in two gas projects, the Stage Coach East and the Flaming Gorge, also located in Wyoming.

Samson Oil & Gas' major customers would include the retail, wholesale and international markets. The mining industry is a highly competitive global industry. Most oil and metals are sold into the global spot markets, whilst gas, coal and iron ore are typically sold under long-term contract arrangements with utilities, large industrial users and steel plants. During the fiscal year ended June 30, 2009 (fiscal 2009), the Company produced approximately 22,412 barrels of oil and 125,320 cubic feet of gas. Its subsidiary is Samson Oil & Gas USA Inc.

Carbon County, WY Project

The Look Out Wash Field is located in the Washakie Basin, which is part of the Greater Green River Basin, and is currently producing from 20 wells on Samson's acreage. This field produces principally from the Almond Bar, which is a stratigraphically bound trap. Eight PUD locations remain to be drilled to the northwest of the main field wells. Several formations above and below this main target are gas productive including. The Almond Fluvial formation, an interbedded sand, shale, and coal bed sequence, has until recently been considered a secondary target. This formation is now being included in completions and has added incremental flow rate and reserves on the Almond Bar which is the primary target in the field.

The Lewis Shale formation is the seal to the Almond Bar and regularly returns very large gas shows while being drilled. With the emergence of shale gas plays in the United States, this formation will be a candidate for future evaluation. Cabot (the operator) has recently proposed the LWU #30-17H well to test the Lewis. The Lance formation is produced within the field and sits above the primary zone. The formation is gas saturated and will be exploited in the existing wells when the primary completed intervals are depleted.

The Ericson formation is located below the primary target and has been drilled through only once in the field, but has returned both gas shows and flows in the immediate area. The formation is not normally drilled in the current development phase but the existing wells have been engineered such that they can be extended into this formation/section/unit in the future.

The gas in Lookout Wash is gathered by Western Gas Resources, a third party gas gathering company, on behalf of the operator and the joint venture parties. In September 2006, Western Gas Resources installed additional compression in the field to reduce line pressure in the field from 650 psi to 235 psi. Production in the field initially increased by 26% from 7.8 mmcfgd (gross) to 9.7 mmcfgd (gross).

Samson Oil & Gas (SSN) Products and Services

  • Oil & gas exploration and development.

Samson Oil & Gas (SSN) Locations and Subsidiaries

Samson Oil & Gas Head Office
Level 36, Exchange Plaza, 2 The Esplanade,
PERTH, WA, AUSTRALIA, 6000
Phone: (08) 9220 9830
Fax: (08) 9220 9820

Samson Oil & Gas (SSN) Share Price

Submitted by ASX Listed Company on 29 May, 2010 - 23:51

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