TULSA, Okla., Jan. 9, 2019 /PRNewswire/ -- Samson Resources II, LLC ("Samson" or the "Company") announced today that it recently completed the Spearhead Federal 11-2635 4075 well in Converse County, Wyoming, targeting the Shannon formation, at a depth of 10,931 feet. The Company drilled the well to a total measured depth of 21,182 feet including the horizontal section of 9,940 feet. Since October 25, 2018, the Spearhead Federal well has produced over 136,573 total barrels of 39 degree API crude oil.
The well generated a gross 30-day initial production ("IP") rate of 2,339 barrels of oil equivalent per day (97% oil). Initial production rates on a 24-hour basis peaked at 3,815 barrels of oil equivalent per day (95% oil). The Spearhead Federal 11-2635 4075 has 9,940 feet of stimulated lateral, was completed with 1,243 pounds of proppant per lateral foot and produced 235 boe/day per 1,000' of lateral over its initial 30 days of production. Samson operates the Spearhead Federal well and owns an 80% working interest and 67.6% net revenue interest in the well.
As of January 1, 2019, Samson has applied for over 2,390 operated drilling permits with the State of Wyoming targeting both conventional and unconventional formations across Samson's approximately 145,000 net acres in the Powder River Basin.
Joseph A. Mills, President and CEO of the Company stated, "Samson's approximately 145,000 net acres in the Powder River Basin is situated along the deepest geological axis of the basin and the productivity of our Spearhead Federal 11-2635 4075 Shannon well is reflective of the Company's high-quality acreage position. The well has one of the highest initial 24-hour and 30-day production rates of any Shannon formation well drilled in the Powder River Basin. Samson continues to execute its Powder River Basin delineation program and we remain very encouraged by the early results."
The Samson Board of Directors recently approved the continuation of the Company's Powder and Green River Basin delineation program which is expected to be finalized in March 2019. Based upon the results of that program, the macro economic environment, in-basin service costs, federal permits and the then current commodity price environment, the Board plans to approve a final 2019 budget in late 1Q 2019. The Company had approximately $61 million of cash on its balance sheet as of January 1, 2019 and has no debt. The Company has $160 million of undrawn availability under its credit facility, giving it over $220 MM of total liquidity as of January 1, 2019.
Samson is a privately held onshore exploration and production company headquartered in Tulsa, Oklahoma. The Company holds approximately 200,000 net acres in the Powder River and Greater Green River basins in Wyoming. For more information, please visit our website at www.samson.com.
In this press release, all statements that are not purely historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may be identified by the words "believe," "expect," "anticipate," "project," plan," "estimate," intend," "potential" and other similar expressions. Forward-looking statements are based on currently available business, economic, financial and other information and reflect management's current beliefs, expectations and views with respect to future developments and their potential effects on Samson. Actual results could vary materially depending on risks and uncertainties that may affect Samson and its business. Samson's actual actions and results may differ materially from what is expressed or implied by these statements due to a variety of factors, including (a) the ability of Samson to perform well and compete effectively, (b) the impact of restrictions in Samson's Reserve Based Lending facility on its ability to make capital investments and pursue strategic growth opportunities, (c) the ability of Samson to continue to attract and retain qualified employees, and (d) other risks and uncertainties as disclosed by Samson in the future. Samson assumes no obligation to update any forward-looking statement made in this press release to reflect subsequent events or circumstances or actual outcomes.
SOURCE Samson Resources II, LLC
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