Samson Oil & Gas will present at EnerCom’s The Oil & Gas Conference® 21 on Aug. 15, 2016.
Samson Oil and Gas Limited (ticker: SSN) is an Australian oil & gas company with its principal and registered office located in Perth, Western Australia. The company is listed on the NYSE and has an office in Denver, Colorado. Company operations are focused on the Niobrara and Bakken formations, with additional acreage positions in the Green River Basin, Permian Basin, and Gulf Coast Basin.
Operations Review
On June 30th 2016, the company announced a purchase and sale agreement to divest of its interest in the North Dakota, North Stockyard field for $15 million cash. This sale is expected to close August 31st, 2016. Proceeds from the sale will be used for general corporate purposes and $11.5 million will be used to reduce outstanding debt. Other cash from the sale may be invested in the Foreman Butte project (51,305 acres on the ND/MT border) that is expected to have $50 million in reserve potential.
The company acquired the Foreman Butte acreage and producing wells for consideration of $16 million on April 3rd, 2016. Based on company analysis, the Foreman Butte acreage has a total proved NPV10 of $51.6 million of which $17.6 million is undeveloped. The Foreman Butte project has begun phase two of three in the plan to bring the field to full capacity, according to a June 28th, 2016 press release. These two phases were to first workover shut-in wells that needed mechanical repairs (19 wells), the second phase is to utilize an advanced acid stimulation treatment to wells that are deemed candidates for this workover (15 wells). The third phase, expected to begin Q1 2017, will be to drill into the undeveloped portion of the reservoir.
Financial Review
Samson’s agreement to sell the North Stockyard assets will results in a reduction of debt load by $11.5 million and the company’s borrowing base will have $19 million outstanding following the sale and pay down of debt. A borrowing base redetermination will be performed on Samson’s assets as of June 30, 2016.
The production volumes of existing wells are on a natural decline and this continued through the first quarter of the year with monthly production in January of 653 Boepd and March 606 Boepd. This production resulted in total volume of 41,927 Bbls oil and 92,399 Mcf gas. With the acquisition of the Foreman Butte acreage, an estimated 720 Boepd are expected to join this production for Q2 2016. In Q3 2016 with the sale of the North Stockyard field, production may level off or reduce from expected Q2 levels. In Q1 2016 the North Stockyard field produced 185 Mbbls declined from 224.5 Mbbls in Q4 2015 (Samson held a 25-30% working interest).
Samson Oil & Gas Limited has announced that its plan to regain NYSE compliance by September 14th, 2017 has been accepted.
EnerCom’s The Oil & Gas Conference® Denver – August 14-18, 2016
Samson Oil & Gas (ticker: SSN) will be presenting at EnerCom’s The Oil & Gas Conference® 21 in Denver on Monday, August 15, 2016 at 4:20pm EDT. Conference information and registration for this year’s EnerCom conference may be accessed here.
