Samson Oil & Gas — Investor Presentation (April 2013)
45 slides from Samson Oil & Gas's investor presentation, Apr 2, 2013
Slide 1: Samson Oil & Gas Limited
aE SAMSON OIL & GAS LIMITED March 2013
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by Samson Oil & Gas Limited and contains information about the Company which may not be complete and should be read in conjunction with its disclosures on the ASX and filings with the Securities and Exchange Commission. The presentation contains forward
Slide 3: Samson Overview
SAMSON OVERVIEW NYSE: SSN ASX: SSN 3 Key Information Exchange / Ticker – Dual Listed ASX and the NYSE MKT (SSN) Debt (1) Zero Shares Outstanding (1) 99.3 Million (6) Average Daily Trading Volume (2) 0.80 Million shares Average Daily Trading Value (2) US$0.6 Million Market Capitalization (1) US$65 Mi
Slide 4: Management Team
MANAGEMENT TEAM NYSE: SSN ASX: SSN 4 • Petroleum Geologist • Cooper Basin Exploration Manager for Santos • Discovered and developed significant volumes of tight gas and oil • 35 year of Industry experience Terry Barr Chief Executive Officer Robyn Lamont Chief Financial Officer • Reservoir Engineer •
Slide 5: Project Locations
PROJECT LOCATIONS NYSE: SSN ASX: SSN 5 North Stockyard Project Roosevelt Project Hawk Springs Project State GC Oil Field Sabretooth Gas Field Williston Basin Greater Green River Basin D - J Basin Western Permian Basin Gulf Coast Basin South Prairie Project
Slide 6: Acreage Summary
ACREAGE SUMMARY Objective Project Net Acres DJ Basin Permian Hawk Springs 19,000 Williston Basin Bakken /Three Forks North Stockyard 1,200 Williston Basin Bakken /Three Forks Roosevelt Project 30,000 Williston Basin Mississippian South Prairie 6,000 Total 56,200 NYSE: SSN ASX: SSN 6
Slide 7: 2013 Plan
2013 PLAN NYSE: SSN ASX: SSN 7 » NORTH STOCKYARD » Initiate 6 well, 160 acre infill program » Potential for 14 Bakken and Three Forks wells » HAWK SPRINGS PROJECT » Niobrara » Monitor production performance of first well (Defender). » Revise frac design in response to 9 foot effective fracture half
Slide 8: North Stockyard Field North Dakota Bakken/Three Forks
NORTH STOCKYARD FIELD NORTH DAKOTA BAKKEN/THREE FORKS
Slide 9: North Stockyard Field Overview
NORTH STOCKYARD FIELD OVERVIEW NYSE: SSN ASX: SSN 9 » Located in the heart of the Williston Basin in Williams County, productive in the Bakken and Three Forks, surrounded by major players. » Samson is the operator with an average 60 % working interest and 46% net revenue interest, in 1,920 gross acr
Slide 10: Continental Resources Kodiak Hess QEP Statoil Whiting Zavanna SSN North Stockyard MONTANA WILLIAMS COUNTY
Continental Resources Kodiak Hess QEP Statoil Whiting Zavanna SSN North Stockyard MONTANA WILLIAMS COUNTY MCKENZIE COUNTY DUNN COUNTY
Slide 11: North Stockyard, Williston Basin
NYSE: SSN ASX: SSN 11 NORTH STOCKYARD, WILLISTON BASIN » FIELD DEVELOPMENT » Bakken and Three Forks objectives » 6,000 ft. Horizontal development. » IP rates up to 3,000 BOEPD. » Rates have shown dramatic improvement as the Bakken technology developed. » SSN working interest around 30% in producing
Slide 12: North Stockyard PDP Reserves December 2012
NORTH STOCKYARD PDP RESERVES 31 DECEMBER 2012* Well Gross EUR Net EUR Net NPV 10 Bakken Pool 1.4 MMSTB 0.3 MMSTB $ 11.6 million Mission Canyon Pool 122MSTB 32 MSTB $0.96 million Total 1.5 MMSTB 0.34 MMSTB $12.5 million NYSE: SSN ASX: SSN 12 *Prepared by Ryder Scott
Slide 13: North Stockyard Proved Reserves December 2012
NORTH STOCKYARD PROVED RESERVES 31 DECEMBER 2012 Net EUR NPV 10 PDP 0.34 MMSTB $12.5 million PUD # 0.34 MMSTB $4.1 million Total Proved 0.64 MMSTB $15.7 million NYSE: SSN ASX: SSN 13 # Includes only 2 of the 14 in - fill wells because 160 acre spacing order was post December 31.
Slide 14: North Stockyard Probable Reserves December 2012
NORTH STOCKYARD PROBABLE RESERVES 1 DECEMBER 2012 Net EUR NPV 10 PRB Northern Tier (BK/TF1) # 3.4 MMSTB $42.4 million PRB Both Tiers (TF2/TF3) ^ 6.1 MMSTB $49.8 million Total PRB 9.5 MMSTB $92.2 million NYSE: SSN ASX: SSN 14 • Estimates by Samson’s management • # Includes18 in - fill wells, 4 which
Slide 15: North Stockyard Infill Metrics
NORTH STOCKYARD INFILL METRICS » Bakken /Three Forks Infills ^ » Gross Well Cost $8.1 million » Net Well Cost $4.9 million » Gross EUR 440 MBOE » NPV 10 $2.0 million* (net to SSN) » Expected PDP per well $6.9 million* (net to SSN) » Expected PDP initial 6 wells $41.3 million* (net to SSN) » Expected
Slide 16: North Stockyard Producing Middle Bakken Wells
NYSE: SSN ASX: SSN 16 NORTH STOCKYARD PRODUCING MIDDLE BAKKEN WELLS EVERETT 1 - 15H RODNEY 1 - 14H EARL 1 - 13H GENE 1 - 22H LEONARD 1 - 23H GARY 1 - 24H 640 acre spacing
Slide 17: North Stockyard Field Development Northern Tier Bakken Infill Wells
NYSE: SSN ASX: SSN 17 NORTH STOCKYARD FIELD DEVELOPMENT NORTHERN TIER BAKKEN INFILL WELLS Bakken Infill Wells 160 acre spacing PDP Wells
Slide 18: North Stockyard Field Development Northern Tier Three Forks Infill Wells
NYSE: SSN ASX: SSN 18 NORTH STOCKYARD FIELD DEVELOPMENT NORTHERN TIER THREE FORKS INFILL WELLS Three Forks Infill Wells 160 acre spacing PDP Wells
Slide 19: PDP Well Bakken Infill Three Forks Lodgepole Upper Bakken shale Middle Bakken Lower Bakken
NYSE: SSN ASX: SSN 19 PDP Well Bakken Infill Three Forks Lodgepole Upper Bakken shale Middle Bakken Lower Bakken shale Upper Three Forks Three Forks Bench 2 Three Forks Bench 3 Three Forks Bench 4 Nisku 15 14 13 1,320’ 660’ 1,320’ EVERETT 1 - 15H RODNEY 1 - 14H EARL 1 - 13H
Slide 20: Roosevelt Project Montana Bakken
ROOSEVELT PROJECT MONTANA BAKKEN
Slide 21: Roosevelt Overview
ROOSEVELT OVERVIEW NYSE: SSN ASX: SSN 21 » Located in the Williston Basin in Roosevelt County, prospective for Bakken and Three Forks. » Samson is the operator with an average 66% working interest. » 30,000 net acres; 3% of acreage is HBP with the remainder expiring 2017. » Participated in 2 gross w
Slide 22: 2013 Roosevelt
2013 ROOSEVELT » Observe CLR’s Abercrombie production » Samson has a 2.6% working interest » Participate in the CLR Custer Fed 1 - 7 H » Samson has a 4.75% working interest » These wells along with Samson’s existing wells, Gretel II and Australia II will provide adequate engineering control for the
Slide 23: Middle Bakken Structure
MIDDLE BAKKEN STRUCTURE NYSE: SSN ASX: SSN 23 Samson Gretel II Samson Australia II 4,301 ~ two month cum oil Continental Resources Mackie 1 - 19H drilled Status unknown Continental Resources Dow 1 - 20H(permitted) Continental Resources Rene 1 - 11H (permitted ) Continental Resources Abercrombie 1 -
Slide 24: Drilling Spacing Units
NYSE: SSN ASX: SSN 24 DRILLING SPACING UNITS CONTINENTAL SPACING UNIT = SAMSON SPACING UNIT = Continental Resources Abercrombie 1 - 10H 36,757 bo to date Samson Gretel II Continental Resources Custer Federal 1 - 7H
Slide 25: Hawk Springs Project Northern D-J Basin, Wyoming
HAWK SPRINGS PROJECT NORTHERN D - J BASIN, WYOMING
Slide 26: Hawk Springs Overview
HAWK SPRINGS OVERVIEW NYSE: SSN ASX: SSN 26 » Located in the D - J Basin in Goshen County, Wyoming, prospective for Permian conventional oil and Niobrara unconventional oil » Samson is the operator with an average 40% working interest » Samson owns 19,000 net acres; 2% of acreage is HBP » Participat
Slide 27: Hawk Springs Project
HAWK SPRINGS PROJECT » Drilled Defender, a horizontal Niobrara test » Funded by Halliburton. » Successfully drilled and multi - stage frac . » IP at 288 BOPD in February 2012. » Sustained production rate at around 50 BOPD. » Reservoir analysis suggests limited propped frac length (around 9 feet). »
Slide 28: Hawk Springs Project Next Steps
HAWK SPRINGS PROJECT » Next steps » NIOBRARA » Continue evaluation of the Defender reservoir performance » Frac design can be improved » PERMIAN » Capitalize on positive results of SOA II. » Analysis of SOA leads to re - establishing 3D seismic prospects. » Can map excellent reservoir into a 4 way d
Slide 29: Spirit of America US34 #2 Well
SPIRIT OF AMERICA US34 #2 - 29 WELL NYSE: SSN ASX: SSN 29 9350’ Sand 9500’ Sand 9350’ Sand leak pt. 9300’ Sand Tight rock Tight rock 9300’ Sand 9350’ Sand (tight) anhydrite anhydrite shale 9350’ Sand 9500’ Sand (wet) 9300’ Sand leak pt. anhydrite Anhydrite/shale/ carbonate anhydrite anhydrite Anhydr
Slide 30: Bluff Federal Prospect
BLUFF FEDERAL PROSPECT NYSE: SSN ASX: SSN 30 A A’ A A’ SALT SALT X - Section A – A’ displaying structural closure 4 - way Dip Structural Closure at top of Permian Hartville Fm. 135 acre closure
Slide 31: American Eagle Prospect
AMERICAN EAGLE PROSPECT NYSE: SSN ASX: SSN 31 470 acre anomaly SALT 9500’ Sand pinchout B B B’ B’ Amplitude anomaly showing porous & thick 9500’ sandstone of the Permian Hartville Fm. X - Section B – B’ displaying 9500’ sand amplitude anomaly
Slide 32: Hawk Springs
HAWK SPRINGS » PERMIAN » SOA 11 established excellent reservoir quality but water saturated. » 3D seismic explains trap failure due to an intersecting fault. » 20, 3D amplitude anomalies validated by SOA 11 results » Prospectivity therefore enhanced despite dry hole. » Contingent resource of 30 MMST
Slide 33: South Prairie Project Williston Basin, North Dakota
SOUTH PRAIRIE PROJECT WILLISTON BASIN, NORTH DAKOTA
Slide 34: South Prairie Overview
SOUTH PRAIRIE OVERVIEW NYSE: SSN ASX: SSN 34 » Located in the Williston Basin in Renville and Ward Counties, outside Bakken maturity but prospective for Mission Canyon » Stephens is the operator with an average 28% working interest » Samson owns an average 25% working interest in 25,040 acres or ~6,
Slide 35: Forfar Prospect
FORFAR PROSPECT NYSE: SSN ASX: SSN 35 » 1 st Prospect to be drilled off the new South Prairie 3 - D seismic survey » Glenburn reservoir of the Mission Canyon Formation » ~ 420 acre 4 - way dip structural closure » Structure has 20 - 30 feet of relief » Structure created by salt dissolution (similar
Slide 36: Forfar Prospect
FORFAR PROSPECT NYSE: SSN ASX: SSN 36 420 acre Mission Canyon structural closure (6 potential wells) Initial South Prairie 3 - D mapping of the Mission Canyon Fm. Glenburn S. Field +2.5 MMBO to date Prairie Salt Dissolution Edge Interior Salt Collapse axis Formed structural high Untested structural
Slide 37: Valuation Methodology
VALUATION METHODOLOGY » US Equity analysts use a number of metrics » Including: » Enterprise value ($) per flowing barrel » CK Cooper data from their coverage universe suggest: » $211,307 per flowing barrel » Enercom’s Bakken player list » OAS, WLL, CLR, KOG » $213,866 per flowing barrel » Robert Ba
Slide 38: Bakken Company Metrics
BAKKEN COMPANY METRICS NYSE: SSN ASX: SSN 38 EV BOPD 4Q ’12 EV/BOPD CLR $19,291 106,831 $180,578 KOG $3,317 14,356 $231,083 OAS $4,419 22,469 $199,650 WLL $7,528 86,100 $87,429 MEDIAN $213,866
Slide 39: KOG Case Study
KOG CASE STUDY NYSE: SSN ASX: SSN 39
Slide 40: KOG Case Study
KOG CASE STUDY NYSE: SSN ASX: SSN 40
Slide 41: Equity Raises and Value
41 NYSE: SSN ASX: SSN Equity Raises and Value $0.36 $1.09 $2.40 $2.22 $3.41 $3.19 $3.39 $6.60 $6.70 $5.77 $5.21 $9.50 $9.96 $8.21 $9.36 $8.85 $ - $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $ - $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 Enterprise Value (Millions) Share Price Equity Raises and
Slide 42: KOG Case Study
KOG CASE STUDY NYSE: SSN ASX: SSN 42 » Equity market “pre - valued” their production expansion, along with speculative take over possibilities. » Valuation peaked at $700,000 per flowing barrel . » Currently at around $230,000 per flowing barrel. (Compared to YE 2102 of $187,000)
Slide 43: SSN Analogy
SSN ANALOGY Production Rate EV YE 2012 (Actual) 219 BOEPD $41 million YE 2013 (Expected) 1,200 BOEPD $226 million YE 2014 (Expected) 1,600 BOEPD $301 million NYSE: SSN ASX: SSN 43 PRODUCTION METRIC $240,000 PER FLOWING BARREL Assumes 1 continuous rig infill program
Slide 44: Summary
SUMMARY » North Stockyard located in the “heart” of the Bakken accumulation. » Infrastructure in place including salt water disposal, sealed roads. » Initial 6 well program planned to commence first quarter 2013. » New Frontier Rig 24, 1,500 HP, skidable being used. » Cost reductions expected with m
Slide 45: Samson Oil & Gas Limited
SAMSON OIL & GAS LIMITED
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