Samson Oil & Gas Limited (ASX: SSN; NYSE MKT: SSN) provides an operational advisory.
Samson’s Board of Directors is currently in the process of finalizing a 2012/13 budget that, as presently contemplated, will encompass the following projects:
Fort Peck Indian Reservation, Roosevelt County, Montana
Based on discussions with a neighboring operator, Samson expects to participate in two or three horizontal wells with long laterals in the Middle Bakken in the Roosevelt Project by the end of the second calendar quarter 2013. This program is based on positive results seen from the adjacent Abercrombie #1-10H well and the geologic mapping accomplished using the Gretel II and Australia II well results. The three wells that are currently expected to be drilled are the Prairie Falcon well (T27/28N-R53E), which will be changed to a north-south orientation to fit the regional well pattern (SSN = 48% WI, Fort Peck Energy Company (“FPEC”) = 24% WI, OTHERS = 28% WI), a 1280-acre spaced well in T27N-R53E Sections 1 & 12 (SSN = ~9.7% WI, FPEC = ~4.9% WI, OTHERS = ~85.4% WI), and a 1280-acre spaced well in T27N-R54E Sections 6 & 7 (SSN = ~2.2% WI, FPEC = ~1.1% WI, OTHERS = ~96.7% WI). Participation in these wells is subject to election and title verification.
A workover operation on the Gretel II well is expected to occur later this year by which an effort will be made to enhance oil production from the Middle Bakken by curtailing the water production from the three faults intersected at the toe end of the lateral portion of the well.
South Prairie 3-D Project, North Dakota (SSN 25% WI)
The seismic permitting process for the South Prairie 3-D survey, with the Mississippian Madison as the primary exploration objective, is in the final stages and acquisition operations are expected to commence by the end of October. The first 3-D data processing volumes would be expected to arrive in January of 2013 and the first well could be drilled as early as the end of that first calendar quarter. Ongoing leasing efforts are expected to increase the partnership’s current land position of 23,714 net acres, of which Samson has 25% or 5,928 acres.