Samson Oil & Gas Limited (ASX: SSN; NYSE MKT: SSN): NORTH STOCKYARD PROJECT Samson Oil & Gas Limited (ASX: SSN; NYSE MKT: SSN) advises that it has commenced the necessary preparatory work to begin drilling operations on the Billabong 2-13-14HBK, which are expected to commence in the next 24 hours. This well will be drilled into the Middle Bakken horizon. The surface casing on this well had previously been set at 2,300 feet. The well will be drilled vertically to a kick off point at 10,824 feet (TVD) and 7 inch casing landed at 11,300 feet (TVD) in preparation to drill the 6,100 foot lateral in the Middle Bakken. The directional plan has been modified based on the lessons learned from drilling the previously reported Sail and Anchor well to manage the difficult drilling conditions experienced in that well. These modifications have included elimination of the deviation in the vertical part of the hole and the employment of a directional drilling contractor with the ability to use a rotary steerable bottom hole assembly. A rotary steerable bottom hole assembly has superior capabilities to control directional drilling compared to conventional steerable equipment. In addition a lighter mud weight will be utilized in the lateral wellbore, which should increase the rate of penetration. The decision to drill this second Middle Bakken well rather than fracture stimulating Sail and Anchor was taken for several reasons, including the significant cost savings that can be made by stimulating the Sail and Anchor and Billabong wells simultaneously with a hydraulic fracturing treatment. These cost reductions come from a single rather than multiple mobilization costs of the fracture stimulation and ancillary equipment as well as the ability to conduct a single work over in the offset wells to place bridge plugs to protect those wellbores. These savings are estimated to exceed $1 million.
Investors may be too focused on U.S. stocks and China's selloff to notice Puerto Rico's troubles, but the commonwealth's problems are worsening, warns George Schultze, CEO of Schultze Asset Management.