Samson Oil & Gas Limited (ASX: SSN, NYSE MKT: SSN) provides advice on its year end reserves evaluation by Ryder Scott Company, L.P.
Samson has received its 1 January 2013 estimated reserves evaluation report from Ryder Scott Company. This reserves report takes into account the North Stockyard oil field acreage swap referenced in our announcement on 30 December 2012. The reserves report does not take into account the impact of the increased spacing density allowed following the receipt of the Spacing Order from the North Dakota Industrial Commission as this was received after 1 January 2013.
We expect this spacing order to allow a portion of the Probable Reserve to be included in the Proved Undeveloped Category.
As of 1 January 2013, the Ryder Scott Company estimates the following reserves attributable to Samson as:
| || || || Oil |
| || || GAS |
| || || MBOE |
| || || NPV |
| Proved Developed Producing || || || 485 || || || 1,128 || || || 673 || || || 16,687 |
| Proved Undeveloped |
| || || 334 || || || 374 || || || 397 || || || 3,760 |
| Probable || || || 2,007 || || || 2,339 || || || 2,396 || || || 21,896 |
*NPV10 – this is the Net Present Value of the future cash flows, discounted at 10%.
Proved and probable reserves attributable to producing wells or reservoirs were estimated by performance methods. Proved and probable undeveloped reserves were estimated by analogy.
The Ryder Scott reserves evaluation used the NYMEX forward curve as of 1 January 2013 less an appropriate differential to take into account the difference between the NYMEX pricing and the price received by the Company at its various sales points.
The future NYMEX price was West Texas Intermediate crude delivered to Cushing, Oklahoma used in this report is estimated to average $93.07/bbl for 2013, $92.36/bbl for 2014, $90.26/bbl for 2015, $88.30/bbl for 2016 and held constant from 2017 at $87.64/bbl.
The future NYMEX price of gas at the Henry Hub used in this report is estimated to average $3.54/MMBTU for 2013, $4.03/MMBTU for 2014, $4.23/MMBTU for 2015, $4.42/MMBTU for 2016, $4.63/MMBTU for 2017, $4.88/MMBTU for 2018, $5.16/MMBTU for 2019 and $5.41/MMBTU for 2020.
Development of North Stockyard
Samson is continuing to work on its planned capital or debt funding in order to exploit the proved undeveloped and probable value in the North Stockyard field.
This article is for information and discussion purposes only and does not form a recommendation
to invest or otherwise. The value of an investment may fall. The investments referred to in this
article may not be suitable for all investors, and if in doubt, an investor should seek advice from
a qualified investment adviser. More