By STEVE SUTHERLIN For Petroleum News Bakken One township north from North Stockyard, Samson is targeting a June spuddate for its first Continental operated well in the Rainbow project, Barr said, adding that the companies are pursuing a permit transfer to Continental. Sixteen wells are planned at Rainbow, with eight wells targeting the middle Bakken and eight wells targeting the first bench of the Three Forks, he said. The company’s short-term objective is to drill one Bakken well and one Three Forks well. Samson has two spacing units in 2,560gross acres at Rainbow, with a 23 percent equity in the Continental operated unit, and a 53 percent equity in the second unit to be drilled later, Barr said. One of Samson’s longer term objectives is to sell part of its interest in Rainbow. As the Rainbow wells come on line in February 2015, Samson expects its production to climb to 1,500 boepd, riding a predicted production surge in October from Three Forks wells at North Stockyard. Samson expects its production to surge well above 2,000 boepd in 2016 as higher equity Rainbow wells come on line. “We will see Samson’s production growth over the course of the next two years grow quite healthily from this investment in both North Stockyard and Rainbow,” Barr said. The company’s production growth line shows a decline in the second half of 2016 due to well depletion, Barr said, but the curve does not reflect future additions of acreage to the company’s holdings. “We would expect to add acreage to our portfolio in this area and that growth will continue, it’s just that we don’t have any more acres at this point and therefore haven’t put anything on this particular production growth graph,” he said. Samson estimates that its proved production reserves growth, net to the company will rise above 1 million boe in late 2014, from a level below 500,000 boe in January, Barr said. In early 2016, the company expects its proved production reserves to rise above 1 Billion boe in late 2014
SSN Price at posting:
2.4¢ Sentiment: Buy Disclosure: Held
