Samson 50% Working Interest
The Niobrara Formation is the primary target for the project and is a fractured chalk reservoir and by way of example produces from this interval in the Silo Field some 30 miles to the south of the Hawk Springs area. There is a strong correlation between the resistivity of the Niobrara Formation and where the rock is fractured and oil saturated. As a consequence two areas of anomalously high resistivity readings from existing well bores within the Hawk Springs project area have been established where it is likely that analogies to the Silo Field can be established.
The Silo Field will recover around 10 mmstb of oil, the discovery was made in 1982 but it was not until 1992 when horizontal drilling was applied to the field that significant recoveries were made. Wells drilled using this technique have averaged a recovery of 230,000 bbls of oil compared with average recoveries of around 25,000 bbls for vertical wells.
The exploration programme that has been designed for this objective is that two vertical wells will be located in the areas of elevated resistivity and these wells will be drilled through the Niobrara, Codell and the Muddy Sandstones such that all prospective levels can be evaluated including the shallowest coal bed methane objectives which would be cored. The well would then be plugged back and a horizontal well drilled under balanced.
The potential resource identified for the Niobrara is 20 mmstb recoverable (10 mmstb net to Samson), based on the two observed resistivity anomalies representing two Silo look a likes.
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