Samson has 30% equity interest in its North Stockyard Prospect. These wells are located in Stockyard Creek Field and are operated by Zavanna. Samson has planned four infill wells this year and two infills in 2013. IP rate results from these wells are (Parentheses show IP rates released by Samson):
- Gene 1-22H: IP rate of 1128 Bo/d (2936 Boe/d)
- Leonard 1-23H: IP rate of 49 Bo/d (900 Boe/d)
- Gary 1-24H: IP rate of 855 Bo/d (2780 Boe/d)
- Earl 1-13H: IP rate of 853 Bo/d (1300 Bo/d)
- Rodney 1-14H: IP rate of 489 Bo/d (1100 Bo/d)
- Harstad 1-15H: IP rate of 58 Bo/d (NA)
- Everett 1-15H: IP rate of 323 Bo/d (1373 Boe/d)
Two specific wells had problems, but I am unsure of the reasons. Also Samson gives its results in two different measurements, with four in barrels of oil equivalent and two in barrels of oil.
Given these wells are completed on 640 acre laterals, shows how good this acreage is. Kodiak also participates in this field as part of its Polar Prospect purchase.
Samson could pull off something big in the near future. It is a basic premise of oil and gas. Buy in cheap, and de-risk the acreage to increase its value. Next, create cash flow to purchase more acreage.
Going over Samson's current plan, it is not only aggressive but also quite smart in my opinion. It initially purchased into the Niobrara for $50/acre. Samson sold a large portion of this acreage to Chesapeake (NYSE:
CHK) for a large profit.
CNOOC (NYSE:
CEO) paid Chesapeake $4,150/acre for part of this play. Samson paid off its debt and leased a large area in the Montana Bakken for $200/acre.
The reason this was such a good move in my opinion, is this area already had commercial wells completed by Continental and Brigham (NYSE:
STO). It is my opinion this acreage is quite good, and may be worth close to the amount it sold its Niobrara acreage for.
http://seekingalpha.com/article/373051-2-small-bakken-companies-turning-the-corner
