His response has been to finetune the group's strategy by boosting Samson's oil portfolio. While gas prices have dived, oil prices remain nice and strong at more than $US60 a barrel. What's more, it looks like it will stay that way.
First move in the expanded oil strategy has been the purchase of a 34.5 per cent working interest in a big acreage position next to the North Stockyard oilfield in North Dakota's Williston Basin.
Samson and its US partners will be hunting for an extension of the Bluell formation that hosts the producing State of North Dakota L-1 well in an adjacent lease. It's got gas all right, but the real kicker is its expected recovery potential of some 450,000 barrels of oil.
Samson and its partners have identified five prospective locations, with each to be drill-tested across horizontal horizons, the common practice in the region.
On a best-case scenario, five targets might be able to recover 5.4 million barrels of oil, giving Samson exposure to about
1.7 million barrels. That's the hope anyway, with the first well capable of serving up an early Christmas present for Samson shareholders.
Some punters aren't waiting, driving the stock up from its mid-November low to the 30¢ a share that Samson commanded on Friday from mondays melbourne age regards kanga
SSN Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
