Foreman Butte Project Operations ProgramAs previously advised Samson had a three pronged approach to increase the production from the Foreman Butte project: 1) Workover shut-in wells with mechanical problems2) Workover shut-in horizontal wells with advanced stimulation potential 3) Proved undeveloped drilling Of these three initiatives the first one has essentially been completed, with 4 workover rigs recently active in both Montana and North Dakota. This program will be complete this week with 19 wells being bought back into production over the last 6 weeks. This activity has increased Samson's net production from 834 BOPD at the end April to 1,322 BOPD at the current date. The detail associated with this increase is set out in the following table.
|Legacy Assets BOPD||Foreman Butte BOPD||Total BOPD|
The third initiative is the proved undeveloped drilling program and this is expected to commence in the first quarter of 2017.Reserves Samson determined for various corporate purposes, an internal reserve estimate as at June 1 st, 2016. This assessment was completed in response to the recent advance in the forward curve for WTI since the acquisition of the Foreman Butte project.
|PDP||Oil MSTB||Gas MMCF||NPV 10 $ million|
|Foreman Butte project||2,648||1,202||$30.924|
|PDNP||Oil MSTB||Gas MMCF||NPV 10 $ million|
|Foreman Butte project||1,743||3,515||$20.113|
|PUD||Oil MSTB||Gas MMCF||NPV 10 $ million|
|Foreman Butte project||3,448||2,414||$30.595|
|TOTAL PROVED||Oil MSTB||Gas MMCF||NPV 10 $ million|
|Foreman Butte project||7,839||7,130||$81.632|
|Year||WTI oil price||Henry Hub gas price|
The reserves are based on the definitions and disclosures guidelines contained in the Society of Petroleum Engineers, World Petroleum Council, Association of Petroleum Geologists and Society of Petroleum Evaluation Engineers Petroleum Resources Management Systems.Information in this announcement relating to hydrocarbon reserves is the responsibility of the CEO of Samson Oil and gas Ltd., Mr. T.M. Barr, a petroleum geologist who holds an Associateship in Applied Geology and who has 40 years of relevant experience in the oil and gas industry. Samson's Ordinary Shares are traded on the Australian Securities Exchange under the symbol "SSN". Samson's American Depository Shares (ADSs) are traded on the New York Stock Exchange MKT under the symbol "SSN". Each ADS represents 200 fully paid Ordinary Shares of Samson. Samson has a total of 3,215 million ordinary shares issued and outstanding (including 230 million options exercisable at AUD 3.8 cents), which would be the equivalent of 16.08 million ADSs. Accordingly, based on the NYSE MKT closing price of US$0.65 per ADS on June 28th, 2016, the Company has a current market capitalization of approximately US$10.4 million (the options have been valued at an exchange rate of 0.7398). Correspondingly, based on the ASX closing price of A$0.005 for ordinary shares and a closing price of A$0.001 for the 2017 options, on June 28th, 2016, the Company has a current market capitalization of approximately A$16.3 million. SAMSON OIL & GAS LIMITED TERRY BARRManaging Director Statements made in this press release 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 exploration 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 prospectus and prospectus supplement for its recent Rights Offering as well as the Company's report to the U.S. Securities and Exchange Commission on Form 10-K, which are available at www.sec.gov/edgar/searchedgar/webusers.htm.