Samson plans multi-well pads, production pipelines to reduce cost

By Luke Geiver | March 25, 2013

Samson Oil and Gas Ltd. has announced 2013 drilling projects in the North Dakota counties of Williams, Renville and Ward. The company has taken a 60 percent working interest in the North Stockyard Field Development in Williams County where it intends to drill six infill development wells in the northern part of the field. Infill wells are used to more efficiently recover oil in areas that have already been proven. The North Stockyard Field is located in the deepest part of the Williston Basin. The infill wells will be drilled adjacent to three existing wells, according to the company, but the new wells will target both the Middle Bakken and the first bench of the Three Forks formation. In total, 14 wells have been approved in the 160-acre spacing unit, six wells in the Bakken and 8 in the Three Forks.

The company will use the Frontier 24 drilling rig to complete a four-well pad. The process will start in late March or early April, the company said, and two wells will be drilled at 6,300 foot laterals in the Middle Bakken and two others at 6,300 foot laterals in the first bench of the Three Forks. The pad has already been prepared, and, during the drilling phase, Samson will construct and use production facilities and a pipeline to transport water to a disposal facility, all at a lower cost than trucking alternatives.

A gas gathering system to move associated gas, natural gas created through the drilling process, will also be installed to move the gas three-miles away to a processing facility. And, the company intends to install an oil delivery gathering line to decrease gathering constraints related to weather.

The wells will be fractured simultaneously, a process Samson said will help develop a comprehensive fracture system between wellbores that could also reduce completion costs related to crew and equipment moves.

In Renville and Ward counties, Samson has taken a 25 percent working interest in the South Prairie Project. “The area is in the Williston Basin and is prospective for conventional oil trapped in Mississippian aged rocks as evidenced by offsetting producing oil fields,” the company said.

In late 2012, the company acquired a 76-square-mile 3-D seismic grid of the area. The company has assessed the data and now plans to spend roughly $1 million to drill and complete a well into the Mississippian Mission Canyon Formation.

Samson Oil and Gas Ltd. is an Australian-based company that also operates out of Denver, Colo.