•  
  •  
  •  
  •  
  •  
  • Untitled Document
    Untitled Document

    Samson Oil & Gas to re-enter Niobrara formation

    DENVER –Samson Oil & Gas Ltd. (NYSE AMEX: SSN) is looking to re-enter the Niobrara shale formation in the Denver-Julesburg Basin, Wyoming to determine its productive capacity.

    Samson holds roughly 40,800 net acres in Goshen County in southeastern Wyoming, where it has been pursuing the development of the Upper Cretaceous Niobrara Formation as an oil productive horizon. The evaluation of this acreage began in 2006, when the London Flats well was drilled as a horizontal completion. The well was not economically successful, but a recent review of the engineering of the well by Samson indicated that, as drilled, the well design had several shortcomings.

    In light of the development of horizontal completions in the Bakken Formation, the company is hoping for similar success when it re-enters the well to determine its productive capacity.

    Activities by other companies, approximately 15 miles to the south on the border of Platte and Goshen Counties have raised the profile of the prospective formation. Evidence of increased competitor activity and successful completions are abundant, which Samson believes are largely responsible for the keen interest that the industry is showing in its Niobrara Formation project.

    Over the last several months, Samson has been engaged in discussions with various industry partners with a view toward sharing a portion of the exploration expense of the project via a farmout. These discussions have resulted in an offer to purchase a portion of Samson’s interest at a substantial premium over Samson's original purchase price for the acreage. While Samson has not made any final determination to sell a portion of its interest at this time, such a sale could provide additional working capital that would then be available to drill several new wells, to pay down debt or for other purposes. It is, however, Samson’s intent to retain a significant interest in the project in any event.

    Did You Like This Article?

    Get a free subscription to Oil & Gas Financial Journal.

    Related Articles

    GCA: Falling oil price to have uneven effect on US unconventional plays

    11/11/2014 Falling oil prices will have an uneven effect across US unconventional plays based on the qualities of reservoirs within any given play, Gaffney Cline & Associates said in a recent report, noti...

    Magellan proceeds with Saddlehorn Pipeline, extends open season

    11/03/2014 Magellan Midstream Partners LP plans to proceed with the Saddlehorn Pipeline to transport various grades of crude oil from the Niobrara play in northeast Colorado to Magellan's storage facilities i...

    Open season for Saddlehorn Pipeline continues through Nov. 6

    10/30/2014 Magellan Midstream Partners LP and Saddle Butte Pipeline II LLC have entered into a letter of intent to jointly pursue the proposed Saddlehorn Pipeline to transport various grades of crude oil from...

    Magellan extends open season for proposed Saddlehorn pipeline

    10/22/2014 Magellan Midstream Partners LP has extended the open season for commitments on the proposed Saddlehorn pipeline to transport various grades of crude oil from the Niobrara shale to the partnership's...

    Baker Hughes reports well count for third quarter of this year

    10/13/2014 Baker Hughes Inc. reports that the US onshore well count for the third quarter of 2014 was 9,566 wells, up 110 wells or 1% compared to the second quarter of 2014. Compared to the third quarter...

    More Oil & Gas Financial Articles

    GCA: Falling oil price to have uneven effect on US unconventional plays

    Tue, Nov 11, 2014

    Falling oil prices will have an uneven effect across US unconventional plays based on the qualities of reservoirs within any given play, Gaffney Cline & Associates said in a recent report, noting there exists a complex relationship between the pace of shale production and falling futures prices for light, sweet crude oil.

    Magellan proceeds with Saddlehorn Pipeline, extends open season

    Mon, Nov 3, 2014

    Magellan Midstream Partners LP plans to proceed with the Saddlehorn Pipeline to transport various grades of crude oil from the Niobrara play in northeast Colorado to Magellan's storage facilities in Cushing, Oklahoma.

    Open season for Saddlehorn Pipeline continues through Nov. 6

    Thu, Oct 30, 2014

    Magellan Midstream Partners LP and Saddle Butte Pipeline II LLC have entered into a letter of intent to jointly pursue the proposed Saddlehorn Pipeline to transport various grades of crude oil from the Niobrara shale to Magellan's storage facilities in Cushing, Oklahoma.

    Magellan extends open season for proposed Saddlehorn pipeline

    Wed, Oct 22, 2014

    Magellan Midstream Partners LP has extended the open season for commitments on the proposed Saddlehorn pipeline to transport various grades of crude oil from the Niobrara shale to the partnership's storage facilities in Cushing, Oklahoma.

    Baker Hughes reports well count for third quarter of this year

    Mon, Oct 13, 2014

    Baker Hughes Inc. reports that the US onshore well count for the third quarter of 2014 was 9,566 wells, up 110 wells or 1% compared to the second quarter of 2014. Compared to the third quarter of 2013, the well count was up 491 wells or 5%.

    Most Popular

    Oil & Gas Jobs

    Search More Job Listings >>
    Subscribe to OGFJ