Roosevelt Project, Roosevelt County, Montana
Gretel II 12KA 3 #1-30H: Drilling operations are completed and the drill site has been cleared in preparation for the hydraulic fracture operations. We anticipate these operations to commence about March 19th.
Australia II 12KA 6, #1-29H: The well has been flowed back from 8 open frac stages and there remain 5 stages that have yet to be flowed because of the perforating fish and plugs that remain in the well bore. The well has been shut in, in preparation for a work-over rig which is due on the well this week and it is anticipated that the remaining stages will be flowing at the end of the week after the well bore is completely cleaned. Part of that operation will include the running of a production string which, because of the gas content in the produced fluids will assist the fluid lift.
The oil rate over the three days the well has been on flow has been around 70 BOPD however this rate is not considered to be diagnostic because of the condition of the well bore (fish and plugs), the lack of a tubing string and the early stage of the flow back. The oil cut was increasing with time and we expect it to continue until the well reaches its maximum potential.
Abercrombie 1-10H: The Abercrombie well has set and cemented 7 inch casing at 9,029 feet (MD) at the head of the lateral and the lateral is being drilled ahead at a depth of 9,624 feet.
The surface location is 4 miles south of the Gretel II surface location, and the bottom hole location is approximately 1 mile south of the Gretel II bottom hole location. The well is being drilled as a 10,000 ft. middle Bakken horizontal.
Hawk Springs Project, Goshen County, Wyoming
Defender US33 #2-29H: The Defender downhole pump has been replaced and since Friday evening (2.5 days) the well has produced 429 bbls of oil of which 160 bbls was pumped into the well to free the sucker rods and pump. Due to the volume of fluids pumped into the well for work-over operations, it will take a few days of production to establish a reasonable evaluation; however, the last daily recorded rate was 288 BOPD and we expect that the oil rate will continue to increase as we continue to remove the frac fluids and reduce the annular fluid column. Cumulative oil production to date is 2,960 barrels of oil.
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 AMEX under the symbol “SSN”. Each ADS represents 20 fully paid Ordinary Shares of Samson. Samson has a total of 1,996 million ordinary shares issued and outstanding (including 246 million options exercisable at AUD 1.5 cents), which would be the equivalent of 99.8 million ADSs. Accordingly, based on the NYSE AMEX closing price of US$2.74 per ADS on March 2nd, 2012 the Company has a current market capitalization of approximately US$270 million. Correspondingly, based on the ASX closing price of A$0.13 on March 2nd, 2012, the Company has a current market capitalization of A$255 million. The options have been valued at their closing price of A$0.115 on March 2nd, 2012 and translated to US$ at the current exchange of 1.069 for purposes of inclusion in the US$ market capitalization calculation.