Exploration & Production | Seismic | Capital Markets | Private Equity Activity

Samson to Begin 3D Seismic Survey at Roosevelt Project

Share Print Bookmark    |    Tuesday,March 04,2014

Samson Oil & Gas Limited has reported an update on its North Stockyard and Roosevelt projects in North Dakota and Montana.

North Stockyard Project, North Dakota

Frontier 24 Drilling Rig

The Matilda Bay drilling pad is expected to be completed today and the Frontier Rig 24 will be mobilized to that pad on Tuesday, March 4^th. This pad will host two middle Bakken Formation wells. The Matilda Bay well pad is located on the southwest corner of Section 15.

Coopers 2-15-14HBK (SSN WI 27.7%)

The production tubing and packer has been run in this well. The installation of the flow line to the production equipment has commenced.

Tooheys 4-15-14HBK (SSN WI 27.7%)

The workover rig has been located over this well in preparation to run the production tubing.

Little Creature 3-15-14HBK (SSN WI 27.7%)

The production packer has been run in this well and the production tubing will be installed after Tooheys is completed. These three wells are located on the Tofte 2 pad on the north-western boundary of Section 15.

Blackdog 3-13-14HBK (SSN WI 25.03%)

Fracture stimulation on the Blackdog well began on Feb. 24^th, but was halted when the frac string was found to be in pressure communication with the annulus. The frac string is designed as a temporary conduit to protect the production casing from the pressure exerted during the stimulation procedure, and therefore its pressure integrity is required. A workover rig is now over the well and is undertaking a test procedure to determine where the leak is occurring, and will then take the necessary remedial action prior to the fracture stimulation job recommencing.

Sail and Anchor 1-13-14HBK well (SSN WI 25.03%)

Currently the Sail and Anchor well is shut in while fracture stimulation operations on the Blackdog are underway. As previously announced, a coil tubing operation is planned to drill out the frac plugs on Sail and Anchor when fracture stimulation is completed on the Blackdog well.

Roosevelt Project, Montana

Samson previously announced an agreement in principle with Momentus Energy whereby Momentus would acquire a 3-D seismic survey and drill a horizontal middle Bakken well in exchange for 50% of Samson’s equity in this project other than the two existing wells, with Samson fully carried through this expenditure. The agreement also allows Momentus to re-enter and work over both the Gretel II and Australia II wells in a yet to be agreed program, at its cost, which would allow Momentus to earn a 50% equity in those two wells and their surrounding acreage.

The parties have now executed a definitive agreement and Momentus is proceeding to acquire the 3-D seismic grid. Permitting is underway and it is currently expected that acquisition of data will commence in April of this year. The 3-D data will allow a better understanding of both the unconventional and conventional prospectivity of the area. As previously announced, Samson’s residual equity will be considerable, comprised of 15,000 net acres.