By OGJ editors
HOUSTON, Jan. 26 – Samson Oil & Gas Ltd., Perth, signed a participation agreement with Halliburton Energy Services Inc. and Samson’s existing private company partner covering part of Samson’s Hawk Springs project in Goshen County, Wyo.
Samson and its partner will be free carried through the drilling and completion of two wells with 4,500-ft laterals and will be reimbursed for part of the cost of the North Platte 3D seismic survey. Halliburton will acquire 25% equity in the farm-in area (a net 2,819 acres). The transaction has been structured such that the acquisition cost can be valued at a rate of $3,275 per acre.
Halliburton retains the option to not drill the second well, in which event its 25% equity would be reduced to half the project area, a net 1,410 acres. The farm-in area consists of 11,277 gross acres, including 6,589 net acres currently held by Samson. Assuming completion of both wells, Samson’s acreage inside the Halliburton farm-in area will be reduced to 4,942 net acres, and Samson’s total holdings in the Hawk Springs project will be reduced to 14,883 net acres, versus the approximately 16,530 net acres currently held.
Samson remains operator and intends to spud near the end of the first quarter of 2011. The agreement covers the Niobrara formation and conventional targets.