SSN 0.00% 1.5¢ samson oil & gas limited

All gone quiet, again. What's happening TB? - One solution in...

  1. buc
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    All gone quiet, again. What's happening TB?


    - One solution in the transient analysis suggests that the gas reservoir has a volume of 5.3 BCF and accordingly the balance of the reservoir volume would be occupied by oil and would be estimated at 20 million barrels of oil in place. Typical recovery factors are around 25% and thus 5 million barrels might be recovered in this scenario.


    - In the event that the entire Bluff prospect is filled with nitrogen it is possible that this gas can be commercialized. Very preliminary discussions with an industrial gas company would suggest that there is a market for this gas in the oil field service sector where it is used as a frack and cleanout fluid.

    Whilst liquid nitrogen is typically manufactured from the atmosphere this process requires the gas to be compressed from an atmospheric pressure of 14.7 psi and that process accounts for about 50% of the cost which would largely be avoided using the Bluff well head pressure.

    We understand that liquid nitrogen supplied to the energy sector is priced at around $20 per mcf.

    This final product pricing would suggest that there is a significant margin available for field produced nitrogen.
 
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