Samson Provides a Production and Operational Update
The fracture stimulation of the two primary zones in the Almond Formation intersected in the Stage Coach East #1 has been completed. The stimulation went as planned and placed 106,000 pounds of proppant using nitrogen energized stimulation fluid. The two stage frac was isolated by a flow through plug and the well is currently flowing back frac fluids, which is expected to continue for the next 12 to 18 hours, after which tubing will be run to enable a production test to be undertaken.
Lookout Wash Field (SSN 18.2%)
The operator of the Lookout Wash Field has advised that it will be restarting the field for November deliveries, after the October shut in because of low gas prices. While the November price has yet to be published the operator has committed to deliver gas because prices will have recovered sufficiently to flow the field. The daily spot price at Colorado Interstate Gas (CIG) was quoted by Platt's yesterday at US$3.38 per mmbtu compared to the October forward price of US$1.11 per mmbtu. Samson has in place two hedges amounting to 50,000 mmbtu per month set at a weighted average of US$6.09 per mmbtu at CIG.
Production from the field is expected to be enhanced during the November due to a compression upgrade at the Snowbank facility, which services the field. The upgrade will result in the line pressure being reduced to between 200 to 225 psi at the wellheads compared to a current 325 to 375 psi. This will result in a modest increase (Around 5%) in the field production and will also allow some in-field compression to be retired, lowering the field operating costs. This upgrade is expected to be effective at around November 15 and will not effect the ongoing operations of the field production.
Lookout Wash Unit #30-31 (SSN 24.4%)
The Lookout Wash Unit #30-31 development well is drilling ahead above the primary objective at a depth of 7,541 feet after having set surface casing at 1,515 feet. This well is located in the central part of the field and is adjacent to the best performing well in the field, which has produced in excess of 3 Bcf. The 30-31 well has a planned total depth 11,500 feet and its primary target the Almond Formation is expected to be intersected at around 11,090 feet. The well is expected to recover a reserve of 2.2 Bcf and have an initial production rate of around 2.5 mmcfd.
The Lookout Wash Field, Stage Coach East #1 well and the Lookout Wash #30-31 are located in the Green River Basin in Wyoming.
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