REASONS THIS STOCK COULD SOAR WHEN OIL PRICES SPIKE 50 - 100%

  • The company was founded by a former Exxon Mobil president responsible for 300,000 barrels of production a day (BOPD).
  • Management has invested over $1.5 MILLION in establishing the corporate structure, refining acquisition parameters and developing the current deal pipeline.
  • Current production averages 1133 barrels of oil per month (BOPM) representing 950,000 BO proved / probable reserves. This project is estimated to do 3400 BOPM after rework.
  • Proven and probable (2P) reserves associated with their Louisiana assets have a discounted present value (PV10) of $41,245,950 as of a March 1, 2011 reserve summary prepared by management, indicating attractive potential for growth.
  • Closed bridge financing for $150,000 and went public in 2011.
  • Plans to acquire over 1,500 acres with over 59 shut-in wells and 30 producing wells with 40 BOPD of current production, which will do 200 BOPD with minimal rework representing 2.1 MILLION barrels of proven reserves. A preliminary agreement has already been secured.
  • Plans to acquire and develop $200 MILLION in proven reserves.

Monday, October 3, 2011

Samson Oil & Gas Is Picking Up


A couple of months back I expressed doubtsover whether Samson Oil & Gas (AMEX:SSN  ) would be able to fund its future development program. However, things now seem to have started looking up following the company's drilling update in the Niobrara shale.
Successful first attempt
Samson has finished drilling its Defender US33 No. 2-29H well, and it's good news so far. Core analysis from the vertical section of the drilled hole indicates oil-saturated brittle carbonate sections. Since this is the first drilling for the company's Hawk Springs project in Niobrara, this should sound encouraging to shareholders. The well's 15-stage fracturing is expected to start by the end of October.
Following the sale of its Greater Green River Basin properties in Wyoming to Chesapeake Energy (NYSE: CHK  ) , Samson paid off all debt and beefed up its cash balances. With around $58 million left in the bank, Samson looks comfortably placed to meet its expected capital expendituresof $25 million for fiscal 2012.
Source: Motley Fool 
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