SSN Update - 3-D Seismic Acquisition Complete
I know I haven't updated you all about Samson recently, but that's because not much news had come out of the company in north of a month. That changed as of last night, when the company announced that it has finished its 3-D seismic survey on 60.4 square miles of land in Goshen County. Once received, the data will hopefully allow the company to identify areas with more natural fractures on its acreage and assist in determining where to drill its Niobrara test wells, as well as give the company information on whether and where there are conventional oil-producing targets on its acreage, such as the Codell formation. The company expects to begin receiving the data in mid-January.
The company also announced that the operator of the Earl and Rodney wells has delayed completion of the wells until the first quarter of 2011 due to heightened activity in the Williston Basin. This is an unfavorable development, obviously, but these Bakken wells are not instrumental to the company. It is roughly breaking even on an operating basis, and given the comparatively few wells that it can participate in here, it's not a particularly big deal. Samson did say that it intends to enter into long-term contracts for both drilling and fracturing stimulation services for its Goshen County acreage, so hopefully this will not become an issue there.
The company also mentioned the recent price action in the stock, but said that it did not believe there was any corporate development responsible for it. They did mention that Enercom released a research report on Samson on the 12/29/2010 that may be responsible for it. It is available at the company's website - a link will be posted at the end of the blog.
This blog is basically just a rehash of the company's press release since it is just an update blog, but I do have something to add. Hartleys - an Australian firm - also released a very detailed research report about Samson back in November. It is not posted on Samson's website and only available to Hartleys' clients, and therefore Australians, on the Hartleys website. Someone was kind enough to send me a copy, and I am willing to send copies to people who request them. You can e-mail me at HallShadowCAPS at gmail.com if you would like a copy of the Hartleys report.
http://samsonoilandgas.com/IRM/content/investor_reports.html - Enercom reports
http://finance.yahoo.com/news/Samson-Oil-Gas-Updates-bw-4250090045.html?x=0 - Samson's latest press release