Samson Oil & Gas Limited (ASX: SSN; NYSE AMEX: SSN) provides details of a new acquisition and Samson’s presentation at the Enercom Conference in Denver.
NEW PROJECT, WILLISTON BASIN
Samson has executed a definitive agreement to participate in the exploration of an area within the Williston Basin. Pursuant to this agreement, Samson will acquire a 25% interest in 23,700 acres (net 5,925 acres) at a price of $266 per acre, with the payment of $1.58 million due at closing following normal due diligence on land title.
The exploration opportunity is a conventional oil project that is adjacent to existing production from Mississippian aged reservoirs. The specific location of the project will remain undisclosed.Highlights of the transaction include:
- The project covers 23,700 gross (5,925 net) acres prospective for conventional oil targets in the Williston Basin.
- Low entry cost
- Approximately 20 million barrels of oil potential, based on 2-D seismic.
- 3-D seismic data acquisition survey and processing to high-grade new drilling prospects, to be acquired before end of 2012.
- Drilling and completion cost estimated at $1.1 million per vertical well using conventional drilling and completion techniques.
- Very attractive rates of return