Samson Oil & Gas Limited announced that the acquisition of 27 square miles of the Phase 1 (Covering Samson's entire acreage) of a new 3-D seismic survey in Samson's joint federal exploratory unit (the Rubicon Unit) with Devon Energy has been completed in Sweetwater County, Wyoming.
As previously reported, Samson's exploration agreement with Devon covers Samson's 6,400 acre holding in the western flank of the Vermillion Basin in Sweetwater County, Wyoming. This area contains a 3,500 foot section of Baxter Shale that was drilled in the 1970’s and recovered a significant flow of gas from an unstimulated Baxter Shale. Since that time there has been significant development of the Baxter Shale in the Vermillion region 40 miles east of Samson's acreage, where other companies' drilling efforts have resulted in flows of up to 9 million cubic feet per day from the Baxter Shale.
Samson's agreement with Devon provides that Devon will operate both the seismic acquisition and any subsequent exploratory program. Samson will retain a 50% interest in the leasehold block unless Samson permits a third party to complete the second farm-in well in the Greens Canyon area to earn an 18% equity stake in Samson’s leases. In that circumstance, Samson would then retain only a 32% equity interest in these leases.
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