Australia II 12KA 6, Roosevelt County, MT (SSN 100%, subject to a 33.34% back-in option)
The Australia II well has been plugged back, sidetracked and drilled to the 7 inch casing landing point, successfully landing horizontally in the Middle Bakken porosity zone.
Gas detectors recorded background gas of 200 units in the overlying Lodgepole Formation. This level increased to over 1,000 units in the Upper Bakken Shale, and to 800 units in the Middle Bakken Porosity.
Oil stain filling the intergranular porosity was observed in drilling rock samples from the Middle Bakken Porosity.
A seven inch casing string is now in the process of being run. After it is landed and cemented, the 4,500 foot lateral will be drilled within the Middle Bakken Porosity.
HAWK SPRINGS PROJECT
Defender US33 #2-29H, Goshen County, WY (SSN 37.5% carried working interest)
The Defender US33 #2-29H well continues to flow, both naturally and with the newly installed artificial lift. The oil rate continues to increase, but it is still too soon to fairly evaluate the well’s potential, as the stimulation fluid continues to dominate the flow back.
The Defender US33 #2-29H is the first Niobrara appraisal well in Samson’s Hawk Springs project and is being fully carried by Samson’s farmin partner.
Spirit of America US34 #1-29, Goshen County, WY (SSN 100% working interest)
The Spirit of America well is being prepared to fracture stimulate the Cretaceous Muddy Formation (J-Sand) on Monday December 19th. The single stage treatment will place approximately 100,000 lbs of proppant and the forward plan is to flow the well back immediately.
NORTH STOCKYARD FIELD
Everett #1-15H, Williams County, ND (SSN 26% working interest)
Fracture stimulation operations commenced on the Everett #1-15H well on December 4th with two stages pumped before operations were suspended due to hydraulic problems with the main pump units. The pumps could not be fixed on site and have been de-mobilized for repair. No stand-by charges are being incurred by Samson as the stimulation company is absorbing these.
Stimulation operations will continue early in the new year. The stimulation will be 20 stages and place 2.37 million pounds of proppant.
The Everett #1-15H well is Samson’s sixth Bakken well in the North Stockyard Field.
Infill Well Hearing
The North Dakota Industrial Commission heard a spacing unit application today for the North Stockyard Field. Since there was no objection to the application, it is expected that the application will be granted by the Commission. Upon such grant, four in-fill wells may proceed subject to individual drilling permits being issued. As a result, these wells would be eligible for drilling during 2012.