IPAA FLORIDA FEBRUARY, 2011

Transcription

1 IPAA FLORIDA FEBRUARY,

2 SAFE HARBOR This presentation has been prepared by Samson Oil and 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 the with the Securities and Exchange Commission. The presentation contains forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including statements regarding potential drilling programs, the success of the company's business, as well as statements that include the words "believe, expect anticipate" or similar expressions. Such forwardlooking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Samson Oil & Gas Limited to differ materially from those implied or expressed by such forward-looking statements. This presentation was prepared as at February 1st and Samson Oil & Gas Limited assumes no responsibility to update the information included herein for events occurring after the date hereof. The various risks and uncertainties are discussed in the Company s Annual Report (available on the Company s website) and on Form 20-F, as amended for its most recent fiscal year and in other reports the Company files with the U.S. Securities & Exchange Commission. This presentation does not constitute an offer to subscribe to an issue and recipients of the presentation are required to conduct their own analysis of the material contained herein prior to making a decision to trade Samson s securities 2

3 COMPANY OVERVIEW Samson is an Australian oil and gas production company with all of its assets in the USA Focused on US liquids rich shale Dual listed on the ASX and the NYSE AMEX (SSN) Advancing its oil production profile from proven oil shales: Bakken Shale, North Dakota 1,200 net acres Established production Located in McKenzie County adjacent to 3000 and 2000 BOPD wells Looking to add another project in the play Niobrara Shale, Wyoming 3D completed JV established with HAL 2 well carry 14,000 acres net to SSN Significant neighborhood CHK two rigs running DEV acquiring 3D 3

4 RESERVES OIL (kbbls) GAS (mcf) BCFe NPV 10 US$ PROVED , US$ 24,812 PROBABLE US$ 1,443 TOTAL 2 P , US$26,255 RYDER SCOTT ESTIMATE AS AT JUNE

5 SAMSON OIL & GAS U.S. BASED MANAGEMENT Terry Barr, Chief Executive Officer Petroleum Geologist, career spanning 35 years Cooper Basin Exploration Manager for Santos Discovered and developed significant volumes of tight gas and oil Experienced in start ups Dan Gralla, Vice President- Engineering Reservoir engineer 20 Years experience David Ninke, Vice President-Exploration Geologist with Geophysical expertise 3D Seismic specialist Robyn Lamont, Chief Financial Officer Chartered Accountant Competent across Australian and US GAAP 5

6 CAPITAL STRUCTURE Equivalent issued ADS 83.4 million Listed warrants 16.3 million ADS price Warrant price (ASX)* US$2.72 US$2.10 Market Capitalization US$260.8 million Debt US$10.3 million Cash US$68.6 million Enterprise Value US$202.5 million * A$ US$ assumed at parity 6

7 SHARE PRICE PERFORMANCE $ % increase Jan 2010 to Jan 2011 $2.20 ADS PRICE $1.70 $1.20 $0.70 $ Jan 23-Feb 14-Apr 3-Jun 23-Jul 11-Sep 31-Oct 20-Dec 7

8 FORWARD STRATEGY Emphasis on oil Bakken Shale, North Dakota, North Stockyard Field Complete development of existing acreage Two wells drilled waiting on frac 1 additional 5,000 well to complete 640 acre spacing 4 additional 10, ft wells to complete 320 acre spacing Bakken Shale Expansion Acquire additional project Niobrara Shale, Wyoming Completed sale of 24,000 acres for US$74 million Farmed in Halliburton Confirm the concept, 2 appraisal wells fully carried Continue leasing within acreage block (4,000 acres targeted) Develop the resource Less emphasis on gas Sell Rockies assets to protect recent tax liability 8

9 PROJECT LOCATIONS 9

10 NORTH STOCKYARD, WILLISTON BASIN Outermost Green Line is Bakken Oil Generation Window

11 Potential ti for 6, 640 acre Bakken producers NORTH STOCKYARD OIL FIELD EARL February Frac RODNEY February Frac GENE 1-22H 2,936 BOEPD initial Bakken objective Horizontal H i t l development Harstad 1-15H p well LEONARD 1-23H 900 BOEPD initial GARY 1-20H 2,780 BOEPD initial Sophisticated fracs Prolific producers within the basin wells IP at up to 3,000 BOPD SSN equity circa 30% Three Bakken Producers, two to frac One to drill on 640 acres, 4 additional on 320 acre spacing 11

12 HAWK SPRINGS PROJECT D-J BASIN Samson 14,000 acres Silo Field Chivington Field Boulder Field Hambert & Aristocrat Fields Key Samson/ Mtn. Energy AOI = Spindle Field Pierre Shale & Niobrara Fields = Fractured Sharon Springs/ Pierre e Shale Fields = Florence Field Fractured Niobrara Fields = 12

13 OIL ASSETS HAWK SPRINGS Bakken and Niobrara Both oil productive from vertical wells for decadesd Both are thermally mature Both are bounded by shale seals Both are naturally fractured Both have modest clay content Bakken development boom dependent on horizontal well technology with multi stage fracs This completion design allows the horizontal toe of the well to be facced initially This technology is being applied to the Niobrara which in the past was not available 13

14 COSKEY

15 COSKEY

16 HAWK SPRINGS SSN NBL Samson 3 D seismic survey completed over their 14,000+ net acres Key: Brown = Samson/Mtn Energy/HAL JV area Yellow = 100% Samson leases Orange = 45% Samson leases NBL EOG NBL Silo EOG Noble Gemini well Current prod. = 600 BOEPD after 4 months. Cum prod.= > 100,000 BOE 26 wells permitted in Weld County, CO NBL NBL STR MRO EOG Silvertip 5 34H Unconfirmed amount of oil being produced 9 new wells permitted SM Energy Atlas #1 19H IP = BOPD Currently producing 500 BOEPD after new wells months permitted at Silo EOG NBL EOG EOG Jake 2 01H IP = 1558 BOPD 50 Mbo in 90 days Over 50 new wells permitted in Weld County KEY EOG = EOG Resources NBL = Noble Energy SSN = Samson MRO = Marathon Oil STR = Questar D J Basin Niobrara Acreage Position

17 HAWK SPRINGS INFRASTRUCTURE Oil receiving terminal Railway Gas pipeline

18 OIL ASSETS HAWK SPRINGS All the major US and international shale players are present EOG 400,000 acres Chesapeake 800,000 acres Devon, acquiring i seismic i in adjacent acres SM Energy 25,000 acres Noble Energy 750,000 acres CNOOC writes a $1.27 bn check SSN has been in the play 3 years 14,000 acres 3D seismic acquired being processed and interpreted 2 new 5,000 ft laterals l carried 18

19 OIL ASSETS HAWK SPRINGS The Niobrara how good is it? Early days so a wide range of estimates Robert Coskey says: 10 to 20 million barrels generated per square mile Assuming a 5% recovery That is between to 0.25 million per 160 acre well or 781 to 1,563 recoverable barrels per acre That translates to 10.9 to 21.9 million bbls net to SSN Samson says: 413,000 barrels per 160 acre well 2,581 recoverable barrels per acre That translates to 36.1 million bbls net to SSN CHK says: 6.25 billion barrels recoverable from 800,000 acres That is 1.25 million barrels per 160 acre well or 7,813 recoverable barrels per acre That translates to 109 million bbls net to SSN 19

20 VALUATION METRICS 413,000 Bbls per well (curve from vintage Silo wells) 1 Well per 160 acres Recovery is therefore 2,581 bbls per acre Net 14,000 SSN acres Net SSN contingent reserve 36.1 mmstb NPV 10 US$18.9 per bbl NPV 10 US$682 million or $8.21 per ADS This valuation is based on a future production projection using the Silo Field as an analogue. The future production performance of the Hawk Springs wells may not meet this expectation. The NPV calculation has been made using the current forward price for oil, and this projection may not prove to be accurate

21 GROWTH PROSPECTS Immediate oil production growth from the Bakken Expected rate of 2,000 BOPD, average past quarter was 220 BOEPD Net SSN 30% 6 total potential wells 3 currently producing 2 drilled waiting on frac crew 1 to drill for a 640 acre spacing 4 to drill on 320 acre spacing Gross estimated per well ultimate recovery 750,000 barrels Near term oil production from the Niobrara Acquired 3D seismic Carry through two horizontals JV with biggest frac provider Fracture stimulate using external casing packers Confirm concept Expected rate of 1,000 BOPD Gross estimated per well ultimate recovery 413,000 barrels 21

22 SUMMARY Commodity prices drives focus into oil production Modest Bakken land position Affordable able to be developed 3 drilled,3 producers, 2 drilled waiting on frac 1 more 5,000 foot lateral to be drilled on 640 acre spacing 4 more 10,000 foot laterals on a 320 acre spacing Niobrara sale for US$ 74 million Provides substantial capital for development Visibility of valuation Niobrara farm down confirms prospectivity Free carry for first two wells Strategic partnership Equity market recognition Share price appreciation US$0.21 to US$2.70 in 12 months Represents a10 bagger or 1046% increase 22