When I decided to invest in Samson Oil & Gas some 13 months ago, I like most knew less about what we currently have available (and there will always be more to understand) but was still confident of their bigger plan. I believe Samson have made great advances since then. Sure, there have been quite a few issues operationally over the course of the year, that’s part of the oil business. How many major players in the oil business would definitely experience similar issues only to choose not to inform shareholders? I, however, am looking at these issues as a positive moving forward. Think of what will be understood another year from now?
I have listened to the recent OGIS conference now a few times and I too am reasurred and the email certanily helps one understand the operational problems experienced to date. I believe the operational issues on current wells should now be past SSN.
I took down notes of the conference that I thought were absolute keys for me and I see quite a few of us share the same sentiment.
Conference notes....
* Very exciting conventional project Hawk Spring area (3D seismic) could identify more than 2 dozen prospects in the permian & pensy aged rocks.
* Both of the acreage positions in Niobrara & Bakken are in a technically viable 'mature' area.
* Niobrara - SSN do think it will emerge as a successful play. One of the biggest risks in this area was the maturity and SSN have seen quite a credible gas content in this oil, and also the vitrinite reflectance would say that it's more than mature. So the maturity question has now been put aside.
* SSN think that the maturity levels that they're seeing here are a key, and that a lot of the dry holes have been out of main sync line in the field and have failed for that reason. SSN certainly have a maturity and they believe that once they get over the production problems, this will be a viable play for the company.
* TB must have mentioned 'maturity' at least 3-4 times in preso. This was what really caught my attention throughout.
* SOAII - loved his words..."the prize is so large" , bigger rig, better design, and therefore we're quite confident....
* Re: HAL yay or nay? - It sounded to me that SSN will definitely drill 2nd well - there's sufficient encouragement out of the 1st well and certainly their seismic processing just to the west would suggest that this play will be viable (love TB's confidence).
* In terms of perm and Pens - they've taken a very hard look at the engineering of this well, look like they know what to do from this point forward.
* Bakken MT - 3D Seismic will be planned later this year. A BIG advantage moving forward.
Should be an exciting year.
Good luck to all.
Cheers, Tony
SSN Price at posting:
9.7¢ Sentiment: LT Buy Disclosure: Held
