Samson 37.5% & 32.5% Working Interests
The SE Amber Gas Field in Grady County, Oklahoma, which was discovered in 1970, covers an area of approximately 6,000 acres. The field has been in continuous production and development since its discovery and has produced in excess of 73 billion cubic feet (BCF) of gas. Samson has an interest in 1,280 acres with 14 wells producing 3,624 mcf daily (790 mcfd net to Samson) in January 2007. These are long-lived reserves with the original 1970 well showing a 55-year production life. Two development wells drilled in 2005 had initial production of 1.3 and 1.6 mmcf per day respectively with each expected to produce approximately 2 Bcf per well of their life.
The results to date from drilling in the Amber Field have been encouraging and have exceeded expectations. The results have substantiated the technical view that the field was not being drained by the existing well development and therefore has proven that the large development program associated with the field can be maintained. The results also support management’s assessment that the in-fill development program that is underway for the Amber Field represents a relatively low risk investment that will generate additional cash flow for Samson. Three additional well locations are possible on Samson’s acreage
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