From Earlier: Samson Oil & Gas Operational Advisory
Samson Oil & Gas Limited (NYSE: SSN) provided operational advice.
HAWK SPRINGS PROJECT, GOSHEN COUNTY, WYOMING
Spirit of America US34 #2-29, (SSN 100% working interest)
As previously advised, Stage 1 of a three Stage fracture stimulation program of the interpreted oil zones in the Permian section of the SOA #2-29 well has been pumped but the bridge plug and packer became stuck by frac sand. While part of the treatment string has been recovered a 2,200 foot fish, consisting of tubing and the packer/bridge plug, remains in the well bore. Joint venture commitments to work-over the Defender well, however, have caused the efforts to recover the fish to be temporarily suspended.
The intention is to return the work-over rig to the SOA2 well site immediately following the scheduled clean-out of the Defender well. The recovery of the fish from Stage 1 would then be followed by pumping the remaining two Stages of the SOA #2-29 frac program.
As previously advised, if an economic rate is obtained from this frac, then there would be many opportunities to pursue, both within the SOA prospect itself (such as drilling the Clipper location immediately adjacent, and subsequently the twenty-four, 40-acre spaced wells within this prospect) and in the 24 seismically defined prospects within the project area. These prospects have substantially identical seismic properties to the SOA prospect, which has now been proved to be generated by porosity development within the Permian section. Some of these prospects are located at substantially shallower depths, and could provide a consequential improvement in reservoir quality.
Defender US33 #2-29H, (SSN 37.5% working interest)
As noted, the work over rig is being transported to the Defender well site and will be rigging up and commencing operations to pull the existing completion string from that well bore. A clean-out string would be run into the full length of the horizontal wellbore, productive of oil from the Cretaceous Niobrara, to ensure that no sand bridges have developed that might have impeded the production rate. Following this clean-out, a completion string will be set, including a rod pump and the well will be returned to production.
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 231 million options exercisable at AUD 1.5 cents), which would be the equivalent of 88.25 million ADSs. Accordingly, based on the NYSE AMEX closing price of US$1.15 per ADS on July 24th, 2012 the Company has a current market capitalization of approximately US$111 million. Correspondingly, based on the ASX closing price of A$0.057 on July 24th, 2012, the Company has a current market capitalization of A$110 million. The options have been valued at their closing price of A$0.039 on July 24th, 2012 and translated to US$ at the current exchange of 1.0304 for purposes of inclusion in the US$ market capitalization calculation.
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