Tulsa, Oklahoma, May 15, 2019 – Samson Resources II, LLC (“Samson” or the “Company”) announced today that the Company recently brought on a four vertical well pad (“Man Camp”) producing from the Fort Union formation in the Green River Basin located in Sweetwater County, Wyoming with average initial 30-day production rates (“IP 30”) as follows:
|Well Name||IP 30|
|FTUN 1495-S17-02V||1,353 boe /day, 55% liquids|
|FTUN 1495-S17-03V||1,298 boe /day, 53% liquids|
|FTUN 1495-S08-23V||1,312 boe /day, 54% liquids|
|FTUN 1495-S08-24V||1,190 boe/day, 47% liquids|
Samson drilled the wells into the Fort Union formation at a vertical depth of approximately 10,400 feet and completed them with a generation two completion design that included approximately 1.4 million pounds of sand and 12 stages per well. The Company operates all four wells with 100% working interest and has 87.5% net revenue interest in each well.
One of the four wells, the FTUN 1495-S17-03V well, is a unit obligation well that will establish a Federal Unit covering approximately 25,500 net acres, if paying quantities as defined by the Bureau of Land Management, is met. The Company anticipates obtaining paying quantities status and designation of the Milagro Federal Unit during the third quarter of 2019.
Joseph A. Mills, President and CEO of the Company stated, “The Man Camp wells are the best performing Fort Union vertical wells in the Endurance / Barricade field and were drilled in a step out area along the eastern portion of Samson’s Green River Basin acreage with no offset production. The Man Camp wells were drilled and completed for less than $4 million each and estimated ultimate recovery (EUR) on each of the Man Camp wells will be approximately 1 million barrels of oil equivalent per well. Samson’s Green River Basin asset is in close proximity to the Colorado Interstate Gas (“CIG”) pipeline and obtains favorable net realized natural gas prices in this area.”
Mills added “Samson’s strategic alternatives process announced in April 2019 will include the initiation of a data room on the Green River Basin asset. The Company currently anticipates the data room to be opened on or around June 1, 2019.” Jefferies LLC is the Company’s financial advisor and will lead the marketing process of the Green River Basin asset.
There is no assurance that the evaluation of Strategic Alternatives will lead to a transaction. The Company does not intend to disclose or comment on developments related to the process unless the Company has determined that further disclosure is appropriate or required by law.
Samson is a privately held onshore exploration and production company headquartered in Tulsa, Oklahoma. The Company holds approximately 208,000 net acres in the Powder River and Greater Green River basins in Wyoming. For more information, please visit our website at www.samson.com.