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Operational Advisory About Hawk Springs Project

Source: www.gulfoilandgas.com 9/18/2012, Location: North America

Samson’s Board of Directors is currently in the process of finalizing a 2012/13 budget that, as presently contemplated, will encompass the following projects:

HAWK SPRINGS PROJECT, GOSHEN COUNTY, WYOMING
Spirit of America US34 #2-29, (SSN 100% WI)
Flow-back operations from the Stage 3 frac in the Permian aged Cassa Formation continued over the weekend on the SOA #2 well. A coil tubing unit was utilized to clean the well bore of frac sand and precipitating salt. This resulted in the recovery of 461 barrels of frac fluid out of the 1661 barrels that was pumped into Stage 3 before the well stopped flowing on its own. A swabbing unit will now be required to recover the remaining load as well as any formation fluids. The previously bypassed Stage 2 zone is currently being evaluated for fracking.

Bluff Federal Prospect (SSN WI to be determined)
A better understanding of the Permian section has been achieved from the well data obtained in the Spirit of America US34 #2-29 well. From that data, several of the upper Permian zones calculate to be hydrocarbon bearing whereas the deepest zone, the 9500’ sand, calculates to contain formation water or is “wet”.. The SOA #2 prospect depended on the 9500’ sand to be a stratigraphic trap (i.e. a sand pinch-out).. The fact that this zone calculates to be wet most likely means the sand does not pinch-out or trap at this particular prospect as the seismic data would seem to indicate but instead persists over a much larger area, requiring a structural closure to trap hydrocarbons in the reservoir. This 9500’ sand can be mapped as a four-way dip structural closure just a few miles away and more than 2,000’ shallower at the Bluff Federal prospect. The excellent reservoir properties seen at this level in the SOA #2 well has allowed us to high-grade the Bluff Federal prospect, which is currently being prepared to be drilled next year.

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