Davis Bintliff #1 – Sabretooth Prospect (12.5% before payout, 9.725% after payout)
Samson Oil & Gas Limited (AMEX: SSN)(ASX: SSN) announced today that it commenced sales from the Davis Bintliff #1 well at a rate of 2.2 mmcfd with a flowing tubing pressure of 9,700 psi. The well is being flowed very conservatively to ensure the integrity of the well bore and is expected to be ramped up to around 4 mmcfd which will be held constant for the early years of the well's productive life. The well was previously flow tested at 6.17 mmscfd and 74 BOPD with no water production at tubing pressure of 9738 psig.
This well has added significant value to Samson’s proved developed producing assets. Because the well is located in the Gulf Coast Basin, the gas produced will be sold at Henry Hub prices.
Leonard #1-23H (10% working interest)
The Leonard #1-23H continues to be flowed back with interruptions to that flow process due to the freezing of the choke. A consistent sustained oil rate has yet to be obtained but the most recent flow data recorded a 485 BOPD rate with 485 BWPD. The well continues to free flow and it is expected that a pump will be run into the well and that a predictable rate established.
It is very encouraging that the well continues to flow up 7 inch casing without artificial lift.
The Bakken Formation gained significant prominence after the United States Geological Survey (USGS) published an estimate in April this year that the unit could recover between 3.0 and 4.3 billion barrels of oil. The USGS has determined that the Bakken Formation represents a “continuous” oil accumulation and that advances in completion technology have increased by 25 times the estimated recovery potential since the 1995 USGS study.
Samson sees that there is the potential to add at least 5 additional Bakken wells and if Samson’s land interest were to be unitised then the number of development locations would be increased to 11. In these wells Samson will have approximately a 37.5% equity.
Samson’s Ordinary Shares are traded on the Australian Securities Exchange under the symbol "SSN." Samson's American Depository Receipts (ADRs) are traded on the American Stock Exchange under the symbol "SSN" and each ADR represents 20 fully paid Ordinary Shares of Samson.
For and on behalf of the board of
SAMSON OIL & GAS LIMITED
TERRY BARR
Managing Director
Statements made in the presentation that is available on Samson’s website 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 “will.”
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 engineering activities.
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 registration statement and report to the Securities and Exchange Commission on Form 20-F, as amended, a copy of which is available at www.sec.gov/edgar/searchedgar/webusers.htm.
Samson Oil & Gas Limited
Terry Barr, CEO, 303-296-3994
Cell:
970-389-5047