Wednesday, April 28, 2010

Samson Oil and Gas Limited (SSN)


June 28, 2013: SSN sells Montana acreage to raise money to develop its Stockyard Creek prospect.

April 16, 2013: SSN to acquire 1,225 net acres to add to its Rainbow Prospect

March 22, 2013: Operational update, 2013. Stockyard Creek and north of Minot. Exciting.

January 18, 2013:  Major update; acreage swap makes SSN an operator in the northern half (Northern Tier) of Stockyard Creek; will develop 14 wells at 160-acre spacing.

December 26, 2011: update on SSN

November 23, 2011: There was an announcement that the investor group, KKR, is buying into the Bakken. It is important not to get confused by the announcement. KKR is NOT buying the Samson Oil and Gas company (SSN), an Australian oil and gas company that holds acreage in the Bakken but does not operate any of its own wells there. This site is about SSN.  Rather, KKR is buying Samson Investment Company, Tulsa, OK , one of the largest exploration and production companies in the US.

July 28, 2011: SSN finalizes acquisition of 20,000 acres of Williston Bakken in Montana, just across the border. 

July 5, 2011: Motley Fool shows some interest in SSN.

June 24, 2011: Samson Oil and Gas to acquire an additional 90,000 acres in the Williston Basin Bakken. All in Roosevelt County, Montana, just west of Williston, ND.

March 26, 2011: SSN to sell its gas assets in Green River Basin, Wyoming, for $6.3 million.

March 22, 2011: Update on Samson's fracking of Rodney and Everett in the Stockyard Creek.

February 2, 2011:  SeekingAlpha: cautious on SSN. I agree.

January 17, 2011: Updates, regarding recent significant price move.

August 30, 2010: Delay in completing Gary 1-24H, but no suggestion of any long-term problem; well is operated by Zavanna.

July 12, 2010: new corporate presentation.

June 11, 2010: For future reference: an open letter from the president, Samson Oil and Gas, regarding the BP spill in the gulf.

NOTE: Samson Oil and Gas (SSN) is a publicly traded company based in Australia. This is not about Samson Resources, a private company, headquartered in Denver, with international offices in Houston. Samson Resources is a driller/operator in the Bakken. SSN owns controls acreage in the Bakken and has working interests in Bakken wells, but to the best of my knowledge, does not actually operate its own rigs in the Bakken. 

NOTE: some of the information below could be construed as a recommendation to invest in Samson Oil and Gas Limited. This is not the point of this posting. I try very hard not to make recommendations and to remain neutral in "all things Bakken." In this particular case, it is even more important that folks understand this. Samson is a very, very small company, headquartered outside the United States, and has a very small footprint in North Dakota. I assume that most investors would consider Samson a speculative play.  On the other hand, it doesn't take many good wells to change the fortune of these small companies, compared to a very good well for EOG.

One of the reasons for posting this: it helps me keep track of the location and the activity in the various oil fields in North Dakota which is one of the prime reasons I started this blog, just to help me keep track of what is going in my home state.

Samson Oil and Gas Limited (SSN)

Samson is a very small cap Australian company. Its market capitalization is about $40 million. KOG is 10 times that at $400 million, and NOG is about double that at $700 million (April, 2010). (Samson does need to update its website regarding its activity in the Bakken; they reference plans for "the remainder of 2007 and 2008," suggesting they last updated that page in late 2007, which speaks volumes about attention to detail; of course, they may be very, very busy just looking for oil.)

I would normally include Samson among "my other producers" but with the recent announcement of a very successful well, the Gene 1-22 well in Williams County, northeast of Williston (and the fact that someone asked if I would post something about it at this site), I thought now would be a good time to add it to the list of Bakken producers.

I don't know much about the background of this company, yet. According to its Yahoo! profile, its interest is in the US (though it is headquartered in Australia) and specifically in Wyoming, North Dakota,  New Mexico, and Texas. Ex-patriots living the good life in the "outback"? Who knows.

The company has been around since 1980, not much longer than KOG (1972). It has accumulated a very small amount of acreage in North Dakota, about 3,600 net acres, most if not all in the North Stockyard oil field in Williams County, which neighbors the northeastern edge of BEXP's "Rough Rider" prospect.

Zavanna is Samson's drilling/completion operator in the "North Stockyard" oil field. The Gene 1-22H well is on my "new wells reporting" as well as my list of  "high initial production wells."

From "dfwtracker" post:

"...Based on it's location the Gene 22-1 well and Samson's adjacent acreage could have been priojected for excellent results, but the 2,936 boe/d from a short horizontal was well above expectations.

Jakobreith posted that the 2,936 boe/d was a new Bakken record for a short lateral and I can confirm it is by far the best results from a Bakken formation short lateral that I have seen.

Samson has six 640 acre spacing units in this area and management has stated with 320 acre spacing they can drill a total of ten Bakken wells. There is also a good possibilty of just as many Three Fork formation wells on this acreage with comparable results.
Samson and Zavanna plan to drill several wells on this acreage this year and the the immediate cash flow from the Gene 22-1 and these other future Bakken wells will be beneficial in funding the acceleration of Samson's drilling activities and production and reserve growth."
Source: Yahoo message boards.

I suppose now that I've put up a separate post for Samson, I will have to do the same for several other small Bakken producers, such as American Energy. Smile.

By the way, these new IP "records" are subject to much discussion. See comments: apparently this was based on an 8-hour flowback. I generally won't get into discussions on "right/wrong" regarding IPs. I just report them and any additional factual information regarding how they were determined.