Samson Oil Stepping Up Its Game in the Bakken
Recently, there has been mixed messages about the shale play boom and its life span. Its been pretty promising thus far, and some companies are still on board with ideas to amp up production in these shale formations. Samson Oil & Gas is one of those companies who are getting ready to further invest themselves in the Bakken. Steve Zachritz has compiled all the important details, take a look.
Initial Two Well East Montana Program Beginning ASAP, On The Heels of Two Goshen Niobrara Tests
- SSN will drill its first Niobrara test, the Defender, a 100% HAL carried well, on or about July 19th. This will be followed by a second well, Spirit of America, then SSN will ship the rig to Montana while studying the data from these two wells and picking the next location for another Goshen Wyoming spud.
- SSN then plans to fund and drill two short lateral wells as part of a drilling obligation on the first tranche of East Montana acreage. HAL will design, drilling and completing the wells. Guesstimate, (now confirmed by management) on total completed well costs for the two wells is $12 mm ($6 mm each). The first well, the Australia II, should spud September 1 on the south east corner of the yellow blob (closer to some of the bigger wells in this part of the play). A second well, the Gretel II, will be located on the western edge of the prospect area near the river and will follow immediately on the heels of the first well.
- Having HAL in all stages of the well operation should ensure a timely frac as well. SSN commented that they did a lot of geologic and engineering work to pick locations for these first two wells. They have been working on this deal for some time now. Again, SSN plans to have at least a 66.6% working interest in the first unit, which boils down to a 53% NRI with Montana having royalties similar to North Dakota.
Planning To Bulk Up Here. The second tranche is an option to take leases on an additional 20,000 net acres, also in the yellow blob area above. I would put strong odds on SSN taking at least the second tranche. Tranche 3 is an option to acquire up to an additional 50,000 net acres in an AMI with the Fort Peck Energy Company.
You can see from the write up, Samson has been in the Bakken for some time and an explanation on their plans to improve production there. This type of move has really paid off for some companies, and Samson may have the chance to do the same. With recent doubt developing around shale plays, we are hoping that Samson can overcome the doubts.
Quotes taken from report by Steve Zachritz, Read the entire article here.
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