Samson Oil and Gas provided a brief 3rd quarter update on their Roosevelt County project.
Samson's Clear Creek Rig 5 was mobilized at the end of October to what they are calling the Australia II well site. They have contracted with a company expected to be seen more frequently in the region, DHS drilling, a subsidiary of Chesapeake Energy Corporation.
A second well being worked by Samson is the Gretel II which has now been spudded. DHS will service that location as well following the completion of drilling operations.
Both Australia II and Gretel II will be drilled initially as vertical pilot holes, where cores of the Bakken Formation will be taken, after which a 5,000 foot lateral will be drilled in the Middle Bakken Formation. These laterals will be fracture stimulated. Samson committed to drill these two wells as part of its acquisition of a 20,000 acre land position with a 20,000 acre option.
Samson's land position is subject to a 33.34% back-in right by Fort Peck Energy Company. According to case law, a "back-in right" is a reversionary interest in a lease which allows a party to a specified share of the working interest when the assignee has recovered specified costs from production. Fort Peck Energy made the provision for Samson to drill on tribal land in late June.
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