article on the west australian website

http://au.news.yahoo.com/thewest/business/a/-/wa/8726587/samson-strikes-deal-with-halliburton/


Samson Oil and Gas has struck a deal with petroleum services giant Halliburton to exploit the Hawk Springs project in the United States.

Under the deal, Halliburton will drill and complete two wells at Samson's Hawk Springs project in Wyoming to earn 25 per cent equity in the farm-in area, totalling 2819 acres.

Shares in Samson jumped on news of the deal and at 11.55am were up one cent, or 10 per cent, at 11 cents.

Following completion of the farm-in program, Samson will keep an average royalty of three per cent within Halliburton's area.

Samson will also be reimbursed for some of the costs of recent 3D seismic tests over the acreage and will retain 14,883 acres.

Halliburton will provide project management services and regular oil field services, but Samson will remain as operator of the project.

The deal would give Samson a premier partner in unconventional reservoirs, Samson said, and was validation of the value of the prospect.

In a note to clients, Hartleys said with its "skin in the game", Halliburton may be more likely to persevere at the site than if it was just a contractor.

Hartleys said the potential value of the Hawk Springs acreage was $700 million, plus another $50 million to $60 million in royalties.

"We expect significant share prices appreciation in the lead up to the drilling at Hawk Springs," Hartleys said.


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