SAMSON OIL & GAS LIMITED JOINT VENTURES WITH DEVON IN THE BAXTER SHALE
SAMSON
OIL & GAS LIMITED JOINT VENTURES WITH DEVON IN THE XXXXXX
SHALE
Denver
1700 hours April 29, Perth 0700 hours April 30, 2008
Samson
Oil & Gas Limited (“Samson”) has executed an Exploration Agreement with
Devon Energy Production Company (“Devon”). The agreement covers Xxxxxx’x 6,400
acre holding in the western flank of the Xxxxxxxxxx Basin in Sweetwater County,
Wyoming. This area contains a 3,500 foot section of Xxxxxx Shale which was
drilled in the 1970’s and recovered a significant flow of gas from an
unstimulated Xxxxxx Shale. Since that time there has been significant
development of the Xxxxxx Shale in the Xxxxxxxxxx region 40 miles east of
Samson’s acreage, where our competitors have expended significant funds that
have resulted in flows of up to 9 mmcfpd from the Xxxxxx Shale.
The
Exploration Agreement envisages that a 3D seismic grid will be acquired in
an
effort to define an exploratory program. Devon will operate the seismic
acquisition and any subsequent exploratory program. Xxxxxx anticipates that
the
seismic acquisition will be undertaken in the summer of 2008. Xxxxxx will hold
a
50% interest in the leasehold block unless Xxxxxx permits a third party to
complete the second farm-in well in the Greens Canyon area and earn an 18%
equity stake in Samson’s leases. In that circumstance, Xxxxxx would retain a 32%
equity interest in these leases.
The
acquisition of 3D seismic is a necessary first step in the evaluation process
such that naturally occurring fractures systems can be identified and evaluation
drilling. This appears to be one of several technical keys to the successful
flow rates seen to date in the Xxxxxxxxxx region.
Xxxxxx’x
agreement with Devon Energy would appear to complement their existing lease
holding which is shown on the attached map. This map shows both Xxxxxx’x acreage
(in yellow) and Devon’s (in green).
Xxxxxx’x
Ordinary Shares are traded on the Australian Securities Exchange under the
symbol "SSN". Xxxxxx'x American Depositary Receipts (ADRs) are traded on the
American Stock Exchange under the symbol "SSN", and, each ADR represents 20
fully paid Ordinary Shares of Samson.
For
and
on behalf of the board of
SAMSON
OIL & GAS LIMITED
For
further information please contact, Xxxxx Xxxx, CEO on 000 000 0000
(US
office) or 000 000 0000 (US cell)
|
XXXXX
XXXX
Managing
Director
Statements
made in the presentation that is available on Xxxxxx’x website that are not
historical facts may be forward looking statements, including but not limited
to
statements using words like “may”, “believe”, “expect”, “anticipate”, “should”
or “will.”
Actual
results may differ materially from those projected in any forward-looking
statement. There are a number of important factors that could cause actual
results to differ materially from those anticipated or estimated by any forward
looking information, including changes in the price of oil and natural gas
and
uncertainties
inherent in estimating the timing and results of exploration activities and
in
the accuracy of predictions made on the basis of seismic data.
A
description of the risks and uncertainties that are generally attendant to
Xxxxxx and its industry, as well as other factors that could affect Xxxxxx’x
financial results, are included in the Company's registration statement and
report to the Securities and Exchange Commission on Form 20-F, as amended,
a
copy of which is available at xxx.xxx.xxx/xxxxx/xxxxxxxxxxx/xxxxxxxx.xxx.