Samson Oil and Gas (ASX: SSN; NYSE MKT: SSN) announces that they entered
into a seismic and drilling agreement with Momentus Energy Corp, a
Canadian exploration and development company located in Calgary,
Alberta. Momentus has committed to the acquisition of approximately
twenty square miles of 3-D seismic data that will cover a significant
portion approximately 30,000 net acres of leases that Samson currently
holds and has the right to explore and develop on the Fort Peck Indian
Reservation.
The 3D seismic is planned in the eastern half of the acreage block where
it will be utilized to image both the middle Bakken and potential
conventional targets in the Red River and Madison Formations. Based on
offsetting discoveries, both of these formations are considered to be
attractive targets in the project area.
Within forty-five days following the receipt of the final processed 3-D
Seismic Data, Momentus will provide a full presentation of their
interpretation to Samson. At that time, Momentus will also make their
election known to Samson for their commitment to drill a horizontal
Bakken well at a location of their choice on the Roosevelt Block.
Upon Momentus having drilled the horizontal Bakken test well, Momentus
shall have earned fifty percent of Samson’s interest in the test well
and fifty percent of Samson’s interest in the Roosevelt Block. Samson
will be fully carried by Momentus in this horizontal Bakken test well
while retaining a net 33.33% working interest.
Momentus has the option to re-enter and work over both the Gretel II and
Australia II wells. In doing so, Momentus would earn a 50% equity in the
particular well (or wells) and the 640 acre spacing unit associated with
each well.
The firm program, consisting of the 3-D seismic and the Bakken well, is
valued at approximately $10 million.
However, more importantly, the farm-in will advance the geologic
understanding of the project area and will allow the application of the
more advanced fracture stimulation techniques developed since the two
original wells were drilled. Samson will still have a significant
interest in the project with a net 15,000 acres after Momentus has
completed their firm program.
About Samson Oil & Gas Limited
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 MKT under the symbol
"SSN." Each ADS represents 20 fully paid Ordinary Shares of Samson.
Samson has a total of 2,547 million ordinary shares issued and
outstanding (including 230 million options exercisable at AUD 3.8
cents), which would be the equivalent of 127.35 million ADSs.
Accordingly, based on the NYSE MKT closing price of US$0.43 per ADS on
December 19th, 2013 the Company has a current market capitalization of
approximately US$57.19 million (the options have been valued at an
exchange rate of 0.8836). Correspondingly, based on the ASX closing
price of A$0.022 for ordinary shares and a closing price of A$0.012 for
the 2017 options, on December 19th, 2013, the Company has a current
market capitalization of approximately A$58.80 million.
SAMSON OIL & GAS LIMITED
TERRY BARR
Managing Director
Statements made in this press 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
10-K, which is available at www.sec.gov/edgar/searchedgar/webusers.htm.
Copyright Business Wire 2013