Transformation in current conditions Small Bakken producer, 22 wells financed with RBL debt. Reflective of 75/bbl oil and a 10 million/well. Balance sheet stressed as WTI slid from 100 to 26/bbl. ASX: SSN Samson recognized that…
Conventional acquisition Conventional reservoirs that dont require stimulation have a capital cost advantage of at least 50% compared to a regular unconventional drill and complete. Large Bakken producer was divesting its…
Conventional acquisition Bid defined by what could be bank financed at 65% of PDP value. Provided necessary discipline. ASX: SSN Lifting cost in the vendors hands was 22/bbl. Bank debt required a lifting cost of 12/bbl. Meeting…
Conventional acquisition Objective. Result 1) Competitively priced 1) Purchase achieved at 16 million versus a November ASX: SSN 2015 PDP of 22 million, with additional value to come as at June 30th. 2) Growth viable at…
Operational strategy Initial focus on PDNP program . Capital efficient resulting in rapid production growth. ASX: SSN Production from 32 wells re-established with: Tubing change outs Rod replacement NYSE: SSN Pump…
Operational strategy Operatorship assumed in early June 2016. Monthly production ahead of that change (net to Samson) was 400 BOPD. ASX: SSN After change rate is 600 BOPD. Represents a 50% increase. NYSE: SSN 7
Debt summary Reserve based facility, first security debt of 30.5m Being reduced through sale of North Stockyard for 15 million. Balance will be reduced by 11.5 million to 19 million. Acquisition vendor has 10%, 1 year, second lien of…
North Stockyard sale Buyer executed PSA to close August 31st unless extended. Effective date is 1st September (or day after close). Terms are 15 million in cash. PDP value at June 1st 15.1 million. ASX: SSN Uses of funds:…
Foreman Butte Project Consists of multiple fields producing from the Red River, Nisku, Mission Canyon, and Ratcliffe. Fields include: Foreman Butte, Harding, Dore, Camp, Target and ASX: SSN North Sioux Pass. Each field has been…
Foreman Butte Field Structure map at Ratcliife reservoir level, (black ASX: SSN contours) net porosity feet 4% (coloration) and cum NYSE: SSN production (magenta bubbles). 11
Foreman Butte Field Structure map at Ratcliffe reservoir level. With proposed ASX: SSN extended lateral infill development wells (9,000- 12,000 lateral NYSE: SSN lengths). 19 PUD wells are restricted to structural…
Foreman Butte Field Historical water cut. With proposed infill development wells. PUD wells are ASX: SSN restricted to less than 80% water cut. PUD EUR developed from offset well performance and NYSE: SSN lateral…
Reserves as at June 1st OIL GAS BOE NPV 10 PDP 3,698 2,650 4,140 48.091 ASX: SSN PNDP 1,743 3,515 2,329 20.113 PUD 3,448 2,414 3,850 30.595 TOTAL PROVED 8,889 8,579 10,319 50.708 NYSE: SSN Notes: 1) Includes PDP of…
Independent reserves as at June 30th Currently being finalized. WTI has shown a significant growth and should result in a substantial increase in PDP reserves. Workover program very effective in restoring ASX: SSN production…
Future growth, fresh water cleanouts Utilizing existing well bores which are generally a 5,000 ft. horizontal, open hole completions. Offset well evidence suggest that two relatively expensive treatments are viable. Given the open…
Future growth, acid stimulation Utilizing existing well bores which are generally a 5,000 ft. horizontal, open hole completion. ASX: SSN Second option is an acid stimulation which achieves permeability enhancement through…
Future growth Acid stimulation Maris 1-16H stimulated by SLB using 8,800 bbls and acid and associated fluids in 14 separate stages. Pumping pressure response suggests that diversion agent was effective. ASX: SSN Well commenced…
Future growth Acid stimulation Estimated cost is 0.5 million Economics look attractive Reserve increment is 200,000 barrels ASX: SSN NPV10 3.38 million 18 candidates for this treatment. Represents 60 million in potential PDP…
Acid frac spread Maris 1-16H ASX: SSN NYSE: SSN 20
Future growth Fresh water clean outs Evans 1-10 well, was cleaned out to the toe and flushed with 4,000 bbls fresh water. Well commenced pumping July 8th. First oil ASX: SSN appeared after recovering 4,500 bbls of water. Offset…
Future Growth PDNP program now into second phase. 8 priority wells currently shut in but economic. Single workover rig employed, expect 2 wells a ASX: SSN week to be bought on line. Under performing wells (8) will be cleaned…
NYSE listing NYSE determined that SSN was below compliance with negative shareholder funds recorded as at December 31 2015. NYSE Staff have accepted Samsons plan to regain ASX: SSN compliance prior to September 2017.…
Strategic thoughts Foreman Butte project has exceptional growth potential. 20 PUD locations offsetting existing producers. Development planning underway and likely to use a single vertical well bore with 4 laterals. ASX: SSN…
Way Forward Continue to exploit PDNP wells, now on the second round of workovers. Evaluation of initial SLB acid/frac job on the Maris well Evaluation of initial fresh water cleanout job on ASX: SSN the Evans well Planning and…
Way Forward Aim is to maximize shareholder value. Solution is to develop potential of the project initially through the most capital efficient investment, PDNP wells, performance ASX: SSN enhancement of existing well bores and…
Way Forward Several scenarios examined. Valuation methodology uses the sum of cash, PDP and debt at the end of each 6 month period divided by the shares on issue. ASX: SSN Preferred outcome delivers the best share price at the…
Way Forward Estimated PDP Reserve - US 140,000,000 120,000,000 100,000,000 ASX: SSN 80,000,000 US 60,000,000 40,000,000 NYSE: SSN 20,000,000 - Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Converts 20 PUDs to PDP…
Summary Samson survived the downturn as is prospering. Acquired an asset that is responding in value creation. Balance sheet restoration through: An asset sale and ASX: SSN Asset growth in low oil priced environment. Early…
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