Samson Oil & Gas Limited (ASX: SSN; NYSE AMEX: SSN) provides operational
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)
Gretel II has been drilled to a total measured depth of 15,555 feet and
the liner completion has been successfully run.
The completion liner utilizes the sliding sleeve and drop ball method
which will allow for a 20 stage hydraulic fracture treatment. We
anticipate the hydraulic fracture operations will commence mid-March.
Australia II 12KA 6, #1-29H, (SSN 100%, subject to a 33.34% back-in
The hydraulic fracture stimulation operations have been concluded with a
total of 1.1 million pounds of proppant being pumped. During one wire
line run, the frac plug and perforating tools were separated from the
wire line and left in the well.
A coil tubing unit was utilized to drill the last seven frac plugs;
however, due to early sand production, the well was shut in for two days
to allow the fracture to heal, and the flow rate has been reduced to
ensure excessive sand does not come out of the fractures. The well will
be flowed back until such time as we feel it appropriate to recover the
wire line "fish" and drill out the remaining frac plugs.
Abercrombie 1-10H (SSN 0.75%)
Samson and its partner FPEC have elected into a well being drilled by
Continental Resources to the extent of a combined 1.125% equity. Of
this, Samson would have a 2/3rds interest or 0.75%.The interest derives
from leases that FPEC and Samson owns at the northern extent of
Continental Resources' spacing unit.
The surface location is 4 miles south of the Gretel II surface location
and the bottom hole location is approximately 1 mile south of the Gretel
II bottom hole location. Therefore, this will be an important data point
in the evaluation of the western part of the Roosevelt Project area. The
well is being drilled as a 10,000 ft. middle Bakken horizontal and it
spudded on February 19th.
HAWK SPRINGS PROJECT, GOSHEN COUNTY, WYOMING
Defender US33 #2-29H, (SSN 37.5% working interest)
The Defender well has experienced a pump failure and therefore a work
over rig is currently over the well undertaking a pump replacement. The
replacement pump being run is expected to be suited to the amount of gas
that is contained in the oil, which has resulted in low pump efficiency.
Samson's farminee has advised that it will make a decision on drilling
the second of its farmin wells by March 31st, 2012. Samson is
currently permitting a well in the sections immediately west of the
Defender location where the seismic coherency data suggests an intense
level of fracturing. This location and two others would be available for
the farminee to drill.
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 246 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$2.87 per ADS on February
27th, 2012 the Company has a current market capitalization of
approximately US$283 million. Correspondingly, based on the ASX closing
price of A$0.14 on February 27th, 2012, the Company has a
current market capitalization of A$275 million. The options have been
valued at their closing price of A$0.12 on February 27th,
2012 and translated to US$ at the current exchange of 1.069 for purposes
of inclusion in the US$ market capitalization calculation.
For and on behalf of the board of
SAMSON OIL & GAS LIMITED
Statements made in this 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
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
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 Company's
report to the U.S. Securities and Exchange Commission on Form 10-K,
which is available at www.sec.gov/edgar/searchedgar/webusers.htm.