samson update, page-31

philbar

Just for you mate.




Quick update on whats happened this year and what's to come.

Achieved this year
- Niobrara 3D seismic survey. Conventional processing and interpretation is complete, with several stratigraphic traps, structural traps and depositional porosity features identified at 3 different levels.


- HAL JV/farm-in to develop Niobrara acreage with Samson. We have acquired an additional 960 acres in this play at auction last week.


- matsim posted this on the 3rd April and it gives a good breakdown on this deal.

"SSN has a current working interest in the Hawk Springs Project of 58.4% for the 2 appraisal wells with Halliburton. After the completion of these wells IMO the WI will be reduced to 43.81% for the remaining project (11277 acres).

The Halliburton farm in area consists of a gross area of 11,277 acres of which Samson currently owns 6,589 net acres. Subsequent to the completion of both wells Samson acreage holding inside the Halliburton area will be reduced to 4,941 acres.�

SSN have a total of 14353 acreage in the Hawk Springs Project on a 160 acre spacing (if approved) would achieve 89 wells at 100% WI, with hopefully an additional 4000 acres by years end. We don't even know what other plays may exist as per the 3 forks formation in the Bakken.

If SSN were successful in the initial stages of the Project and went into full field production,it would budget $36.7 Million for additional drilling. If this was the case the budget would allow for approx 20 wells for the 2011 2012 fiscal year based on SSN WI and well costs which I put at $3.5 - $4 Million each."




First 4 wells have now been approved
- Stars and stripes
- Defender
- Valiant
- Freedom

-2 wells in this programme will be free carried by Halliburton.

-These wells are expected to spud end of May/ June. Once the potential of the resource has been proven, 2 wells per month are programmed to be drilled from end of June onwards.

-All wells drilled by Cheseapeake on the land that we sold them is subject to an on average 3.8% ORRI ( over riding royalty interest )

The unofficial well list

- Enterprise
- Courageous
- Hall
- Intrepid
- Gleam
- Clarke
- Price
- Ahlbrandt ??
- Brandt
- State 24-63-14-1

- Infill Bakken program, which would see an additional four development wells drilled within the field.

- In addition Samson is looking to drill an appraisal well to evaluate the production performance of the Three Forks Formation in North Stockyard Field.


-Terry is attempting to secure an additional 20,000 acres in the Bakken.



- SPUD Everett #2-14H. This well spudded on 7th May. SSN approx 30% interest



- Frac of both Rodney #1-14H (27% working interest) and EARL #1-13H (32% working interest)


- Rodney has been fraced. Plugs to be drilled when Earl is finished.

- Earl has been compromised by bad weather and breakdowns. Plugs partly drilled. Problems with tubing string have temporarily delayed completion.


- State GC#2 well will be fracture-stimulated as soon as a frac crew becomes available. Samson 27% interest.

Q2 2011
- Diamondback Samson 100% Working Interest. The well intends to spud by June 2011.
"The well will be located in Jefferson County, Texas approximately 9.5 miles south of the town of Fannett. The well has been permitted to a depth of 8,900 feet to test a bright spot anomaly in the prolific Oligocene Marginulina Frio sand."

- Wyoming Greater Green River Basin sale has now been closed with Samson receiving $6.3 Million. Our cash position is now $73.3 Million. A tax loss has resulted from this sale and as a result, this will offset our tax liability with regard to the land sale to Cheseapeake. Estimate is $8 Million.

- MAY 2011
DEBT FREE

-A contract to secure 322,000 barrels of water for drilling operations has been secured. This can be increased when necessary.

Cheers OMR