Samson Oil & Gas Advises on Hawk Springs Acreage Acquisition and Defender Drilling Progress
Acreage Acquisition, Hawk Springs Project, Goshen County, Wyoming
DENVER--(BUSINESS WIRE)-- Samson Oil & Gas Limited (ASX: SSN) (NYSE AMEX: SSN) advises it has been awarded, on a conditional basis, approximately 956 net acres of leasehold offered by competitive tender from the University of Wyoming. This land is part of the University?s agricultural research facility. Because the acreage is within Samson?s propriety 3-D seismic coverage, Samson had a significant advantage by being knowledgeable about the rock qualities in the area. Samson has also been successful in acquiring additional acreage in the State of Wyoming?s lease sales as well as leasing acreage from fee owners. Accordingly, Samson has now increased its holding to 17,489 net acres in the Hawk Springs area. This holding assumes that Samson?s farminee exercises its full right to earn a 25% interest within the farmin area.
Defender US33 #2-29H, Goshen County, Wyoming, Samson 37.5% working interest (carried)
Samson further advises that the Defender US33 #2-29H well has reached the Niobrara core point at a depth of 6,937 feet and is currently cutting 120 feet of core from the Niobrara 'A' and 'B' intervals.
This vertical pilot hole will then be drilled to an approximate total depth of 7,450 feet, at which point the hole will be logged, with both the core data and the log data used to determine the final horizontal azimuth. The vertical pilot hole will be plugged back to a kick-off point above the Niobrara. From the kick-off point, the borehole angle will be built until it is horizontal and the bit is positioned within the Niobrara ?B?. Then 7-inch intermediate casing will be set through the curve and the lateral will thereafter be drilled for a distance of approximately 4,300 feet within the Niobrara ?B?. The well will be completed using a plug and perforation process in 15-stages that is expected to involve the placement of approximately 3,000,000 pounds of proppant into the Niobrara Formation. The Defender US33 #2-29H is the first Niobrara appraisal well in Samson?s Hawk Springs project.
Samson?s Ordinary Shares are traded on the Australian Securities Exchange under the symbol "SSN". Samson's American Depository Shares (ADSs) are traded on the New York Stock Exchange AMEX under the symbol "SSN". Each ADS represents 20 fully paid Ordinary Shares of Samson. Samson has a total of 1,996 million ordinary shares issued and outstanding (including 250 million options exercisable at AUD 1.5 cents), which would be the equivalent of 99.8 million ADSs. Accordingly, based on the NYSE AMEX closing price of US$2.35 per ADS on August 26th, 2011 the Company has a current market capitalization of approximately US$229.5 million. Correspondingly, based on the ASX closing price of A$0.105 on August 26th, 2011, the Company has a current market capitalization of A$206.5 million. The options have been valued at their closing price of A$0.105 on August 26th, 2011 and translated to US$ at the current exchange of 1.0488 for purposes of inclusion in the US$ market capitalization calculation.
For and on behalf of the board of
SAMSON OIL & GAS LIMITED
TERRY BARR
Managing Director
Statements made in this release that are not historical facts may be forward looking statements, including but not limited to statements using words like ?may?, ?believe?, ?expect?, ?anticipate?, ?should? or ?will.?
Actual results may differ materially from those projected in any forward-looking statement. There are a number of important factors that could cause actual results to differ materially from those anticipated or estimated by any forward looking information, including uncertainties inherent in estimating the methods, timing and results of exploration activities.
A description of the risks and uncertainties that are generally attendant to Samson and its industry, as well as other factors that could affect Samson?s financial results, are included in the Company's report to the U.S. Securities and Exchange Commission on Form 20-F, a copy of which is available at
SSN Price at posting:
11.5¢ Sentiment: Buy Disclosure: Held
