Samson starts strategic review after Powder River well results

By Luke Geiver | October 01, 2019

After strong drilling and production results in an area outside normal development, Samson Resources II LLC is planning a strategic review for its Powder River Basin unconventional oil wells.

The Tulsa-based exploration and production company announced this month results from two horizontal wells in the Turner formation located within Converse County, Wyoming. The Turner formation is one of three main conventional targets in the play, with the Niobrara and Mowry shales gaining the most unconventional interest among industry.

According to the company, two wells were drilled to further delineate and expand economic viability of the Turner west of the known industry borders. “The wells have exceeded the company’s predrill type curves.”

The Brushy Creek Fed 3772-0631 # 1FH generated an IP 24 rate of 2,260 barrels of oil equivalent per day (boe/d) and an IP30 of 1,708 boe/d (87 percent oil) from a 9,716-foot lateral length, or 176 boe/d per 1,000 lateral feet.

The Reynolds Fed 3872-3106 # 3FH produced an IP 24 rate of 2,227 boe/d and an IP30 of 1,674 boe/d (88 percent oil) from a 9,803-foot lateral length, or 171 boe/d per 1,000 lateral feet.

Joseph A. Mills, president and CEO of the company said, "The Brushy Creek and Reynolds wells represent a meaningful step-out away from existing Turner production and help expand the growing reserve potential of the Turner formation in the Powder River basin, where Samson has a significant leasehold position. These wells move to prove up ~17,000 net contiguous acres in our operated Hornbuckle area for the Turner formation alone. The wells were drilled in the same drilling and spacing unit, spaced at two wells per drilling and spacing unit. As more production data is collected from inner well communication we expect to identify additional down spacing opportunities across our Hornbuckle position. With our recent strong drilling results in the PRB, we will launch a strategic alternative review for our PRB assets sometime during the fourth quarter of 2019." 

Jefferies LLC is the Company's financial advisor and will lead the strategic review process for the Powder River Basin assets.