companyoverview - samson resources · samson resources! companyhistory(! 2...

Samson Resources!

Company Overview

Dave Adams Chief Execu2ve Officer

Samson Resources!Company History

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Leading U.S. E&P Operator with history of innova=on and success

1970 1980 1990 2000

1971: •  Charles Schusterman

forms Samson Resources Company in Tulsa, OK to purchase marginal producing O&G proper2es

1973: •  Samson begins an

ac2ve acquisi2on and drilling program focused on low-‐risk farm-‐outs

1980’s: •  Samson focused on

improving financial structure

•  Posi2oned Company to capitalize on opportuni2es going forward

Early 2000’s •  Samson completes

largest acquisi2on in company history (San Juan Basin – 2005)

November 23, 1973: •  Samson Resources

Company assumes opera2ons of Amerada Hess proper2es

Mid-‐1970’s: •  Samson makes shiU

away from oil to gas to avoid policy concerns

•  Capture aVrac2ve margins in gas market

1989 •  First interna2onal

investment •  The Company later

expanded its interna2onal porXolio

Mid 2000’s: •  Divests Canadian / other interna2onal assets •  Early entry into several emerging shale plays •  Enters Bakken via JV with Con2nental (2005) •  Enters Powder River Basin via JV with

Southwestern Produc2on (2009)

2011

December 21, 2011 •  KKR acquires Samson

for $7.2 billion •  $4.1 billion equity

contribu2on

Samson Resources!

Significant Exis=ng Resources Opera=onal Snapshot

Headquarters: Tulsa, OK

Total net acres: ~2.94 million

Total net risked resource

poten2al: +1,650 MMboe

R/P(1): ~10.1x

1H12 Produc=on Oil15%

Gas75%

NGL10%

6/30/12 Reserves

PDP63%PDNP

1%

PUD36%

XXX MMboe

XXX Mboe/d

Large, Diverse E&P Base

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A4 P aper Guide L ine

A4 P aper Guide L ine

Rockies (oil, liquids and gas plays)Net acreage: ~907,000

Net risked resource potential: 579 MMboe

Permian (oil plays)Net acreage: ~121,000

Horizontal Wolfcamp, C line S hale

North Louisiana / East Texas (oil, liquids & gas plays)Net acreage: 450,000


Bakken (oil play)Net acreage: ~400,000


Mid-‐continent (liquids rich gas plays)Net acreage: 700,000


(1): Based on 2012E production.

Samson Resources!Extensive Drilling Inventory

•  Samson has iden=fied approximately 9,200 gross drilling loca=ons (over 3,700 net) •  Substan=al por=on of leasehold HBP, enabling Samson to focus on highest return drilling •  85% of drilling loca=ons are oil or liquids-‐rich wells

Drilling Inventory by Commodity

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Gas 47%

Oil 36%

NGL 17%

Samson Resources!Liquids-‐Driven Capital Plan

•  100% of the 2012E drilling budget dedicated to oil/liquids-‐weighted plays

•  Es=mated capital of only ~$XXX million necessary to keep produc=on flat

•  10 operated rigs currently running

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2012E 2013E

•  2013E es=mated capital budget will be exclusively oil/liquids-‐focused

•  2013E capital expenditures size expected to be substan=ally similar to that of 2012E

Rockies61%

Mid-‐Continent

26%

East Texas13%

Rockies67%

Mid-‐Continent

27%

East Texas6%

Samson Resources!

Asset Overview

Robert Schaffitzel SVP – Corporate Development

Samson Resources!Overview

q  Samson’s Rocky Mountain Division includes oil, liquids, and gas-‐rich producing and prospec2ve proper2es in four major producing Basins: Williston/Bakken, Powder River, Green River and San Juan

n  Net Acreage: ~1,307,000

n  Net Risked Resource Poten=al: 850 MMboe

n  6/30/2012 Produc=on: 42.7 Mboe/d

n  Net iden=fied drilling loca=ons: 2,300

q  Powder River Basin: Stacked oil plays provide a large inventory of future loca2ons for Samson to target oil rich opportuni2es

q  Williston Basin: Recent performance has established core Three Forks development opportuni2es, while current Middle Bakken tes2ng allows for con2nued upside across the acreage

q  Green River Basin: Has produced abundant oil and gas out of mul2ple reservoirs for over 60 years. Recent horizontal success in the Ft Union has further enhanced the economics of the exci2ng new play operated by Samson

q  San Juan Basin: Mature dry gas asset with some future drilling. Samson seeks to maximize value in this region by reducing opera2ng costs and ac2vely managing the field

Overview of Rocky Mountain Division Asset Map

Williston Basin

Powder River Basin

Greater Green River Basin

San Juan Basin

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Samson Resources!

2 SRC Operated Rigs -‐ Ambrose

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Development Well Type Curve: $7.4 MM, 421 MBO, 350 MMCF > 25% IRR; Development Cost of $19.30 / BOE

Con=nental Planned Ac=vity

Bakken q  Samson expects to run 2 operated rigs through 2012

q  15+ year inventory with 700 net iden2fied drilling loca2ons

q  271 MMboe net risked resource poten2al

Samson Resources!Rockies – Powder River Powder River Basin – Emerging Basin with Mul8ple Stacked Oil Targets

Overview Mul=ple Prospect Areas

q  This area is a reliable source of low risk drilling loca2ons. Samson is currently focused on the execu2on of wells in a repeatable manner in an area delineated by ver2cal and horizontal wells. Samson has established a mul2-‐decade drilling inventory

n  Net Acreage: ~275,000


n  Net Iden=fied Drilling Loca=ons: 1,100

q  Sussex and Shannon:

n  Ac2vity in the Sussex and Shannon has increased in recent months with Bill BarreV, Chesapeake and QEP leasing and drilling around Samson’s recent success

n  Along with Samson well results industry partners and compe2tors have published similar performance:

n  QEP: 1,606 boe/d (SRC, 12.5% WI, via Hilcorp acquisi2on)

q  Muddy Sand Opportunity:

n  Recent results of ver2cal Muddy Sand test (430 BOPD, 800 mcf/d) has unlocked a large inventory of horizontal loca2ons

n  Offset ver2cal wells in the area have EURs of 800+ MBO

q  Niobrara:

n  Industry ac2vity and recent well results has further defined the economic feasibility of this play underlying most of our acreage

n  CHK reported 2,460 boe/d from a recent Niobrara well

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Chesapeake

Anadarko

Devon

QEP SM Energy

BBR Helis

Samson Resources!

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q  Samson expects to run 2 operated rigs through 2012

n  Shannon development in North Tree

n  Sussex wells between Spearhead Ranch and Hornbuckle

n  Sussex development within ScoV field

n  Horizontal Muddy test located in Hornbuckle field

North Tree (Shannon)

2012 Planned Wells

Hornbuckle

Scom

Spearhead Ranch

Scom Field HZ Sussex Will offset 30-‐153 MBO Ver=cals

Offset to TCR State 34-‐36 EUR: 475 MBOE

Offset to ver=cal Shannon 50-‐90 MBO EUR wells

HZ Muddy test

Sussex step out – Fed Unit obliga=on well

Non-‐Op Sussex well

Powder River Basin

Samson Resources!

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Ft. Union

Development Horizontal Well Type Curve: $11.0 MM, 8.4 BCF, 217 MBO, 891 MNGL > 150% IRR; Development Cost of $5.48 / BOE

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q  Samson expects to run 2 operated rigs through 2012

q  15+ year inventory, with 190 net iden2fied drilling loca2ons


Barricade 14-‐1 H 4000’ lateral EUR 6.1 BCF, 769 Mbbl NGL,

121 Mbbl Condensate

Samson Resources!

q  Samson’s Mid-‐Con2nent Division includes 4,722 producing wells which produce from over 25 established produc2ve intervals across the Anadarko, Arkoma and Ardmore basins

q  Net Acreage: ~700,000 q  Net Risked Resource Poten=al: 354 MMboe

q  Net Iden=fied Drilling Loca=ons: 675 q  6/30/2012 Produc=on: 33 Mboe/d q  The Mid-‐Con2nent has a number of very aVrac2ve oil opportuni2es

including: n  Hogshooter: Samson has par2cipated in many wells with partners

and has drilled and completed two Hogshooter wells. The first two wells reached sustained average rate 3,100 Boe/d and delivered IRR’s in excess of 70%. Currently there are two operated rigs running in this exci2ng new play

n  Tonkawa: Samson has completed several Tonkawa wells adjacent to industry ac2vity to establish a program to deliver project IRR’s over 20%

n  Mississippi Lime: Completed first Mississippi Lime well which met expecta2ons. Samson will further delineate this play and expects future ac2vity in this play along with other oil plays across the Mid-‐ Con2nent Division

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Overview of Mid-‐Con=nent Division Overview Asset Map

Samson Resources!

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Ivestor 57-‐6H IP 5.0 mmcfd, 1800 bopd

Davis 64 SL 5H IP 7.0 mmcfd, 2900 bopd

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Granite Wash – Hogshooter and Comage Grove Wash Oil Zones q  Samson expects to run 2 operated rigs through 2012

q  Iden2fying and capturing new loca2ons in this exci2ng new play

Development Well Type Curve: $6.8 MM, 271 MBO, 472 MMCF, 47 MBNGL > 70% IRR; Development Cost of $21.43 / BOE

Samson Rigs

Ac=ve Rigs

CHK Horn Thurman 406H IP 4.6 mmcfd, 5400 bopd CHK Reed 41-‐9H IP 1.4 mmcfd, 1400 bopd

Samson Resources!

Bill #3-‐9H Wai2ng on Comple2on

Ben Stout 4-‐4H Wai2ng on comple2on

Bill 1-‐9H 380 bopd & 440

mcfd IP30 EUR 236 MBO, 178 MMCF Half length lateral

Tonkawa Horizontal Play Map

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Horizontal Oil Plays q  Samson expects to run 1 operated rig in 2012, across several Horizontal oil plays

q  Samson has iden2fied a number of oil plays across the Mid-‐Con2nent division. The Tonkawa is one example of the Company’s approach on HBP’d assets

Tonkawa Development Well Type Curve: $6.0 MM, 224 MBO, 349 MMCF > 20% IRR; Development Cost of $26.58 / BOE

Ommen 1-‐15H 1st mo avg 106 bopd

EUR 163 MBO

Henry 1-‐10H 1st mo avg 329 bopd

EUR 200 MBO Half length lateral Blackhawk 1-‐18H

1st mo avg 617 bopd EUR 295 MBO

Ben Stout 3-‐4H on flowback

Ben Stout 2-‐9H on flowback

Samson Resources!Overview of East Texas Division

q  Samson's East Texas Division includes gas-‐rich producing proper2es in East Texas and North Louisiana and is expanding its footprint with oil and liquid rich opportuni2es

n  Net Acreage: ~450,000


n  6/30/2012 Produc=on: 35 Mboe/d

q  Comon Valley: The CoVon Valley is a liquids-‐rich horizontal play with a significant drilling inventory and great well results to support con2nued development

q  Woodbine: Samson has ~52,000 net acres. Acreage is prospec2ve for oil targets including Woodbine Sand & Shale, Buda, Georgetown, Glen Rose

q  Haynesville/Bossier: No ac2vity currently, 75,000 net acres high graded and HBP

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Overview Asset Map

Samson Resources!

3 Well Pad Biggs #3H – first ‘B’ Sand HZ

Frost Lumber #2H Frost Lumber #3H

#5H #6H

#2H #3H

#3H

16 Development Well Type Curve: $6.8 MM, 5.6 BCF, 60 MBO, 295 MBNGL > 25% IRR; Development Cost of $6.60 / BOE

Currently Drilling Crnko-‐Biggs 4H

East Texas East Texas includes Comon Valley opera=ons

q  Samson expects to run 1 operated rig in 2012

q  115 net risked drilling loca2ons


Samson Resources!

EncanaGastar

Rippy

PetroMaxChesapeake

Devon

Apache

Range

Maness “Eagle Ford”Net Isopach

With Competitor ActivityPonderosaWI 75%

SparkyWI 100%

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Woodbine

Development Well Type Curve $8.2 MM, 298 MBO, 410 MBNGL, 1.6 BCF > 35% IRR; Development Cost of $10.52 / BOE

q  Samson expects to drill 1 gross operated well and test in 2012 q  Encouraged by first two Woodbine Sand tests at Ponderosa acreage

block q  Drilling third test well, applying learnings to date q  Significant ac2vity by other operators nearby, tes2ng Maness Shale

and Buda/Georgetown Lime

Stacked Oil Targets: Woodbine Sand; Maness Shale; Buda/Georgetown Lime; ~ 52,000 net acres

Samson Resources!

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Cline Shale Ac=vity – Sterling Co., Texas q  ~ 14,200 net acres q  Range & Devon currently drilling nearby q  Monitor industry ac2vity and test late 2013

Development Well Type Curve: $7.5 MM, 380 MBO, 1.3 BCF ~ 20% IRR; Development Cost of $15.71 / BOE

Apache 3 Cline Shale

Horizontal Wells

Laredo 22 Cline Shale

Horizontal Wells

Range Edmondson 19 #1H Horizontal Cline Shale

3700’ Lateral Spud 2/10/11

Cline Shale Net Isopach C.I. = 10’ (>20 Ohms, >10%Phi Density & >105 GR API ( Just resis8vity Pay around Horwood Area)

Laredo 4 Cline Shale

Horizontal Wells

Range Hilebrand 16 #1H Horizontal Cline Shale


Devon Virginia City #1H Horizontal Cline Shale

8000’ Lateral Permimed 4/12/12

Devon Stroman #5H Horizontal Cline Shale


Firewheel Prospect

Range Conger 19 #1H

Horizontal Cline Shale

4500’ Lateral Permimed 4/10/12

Samson’s Horwood Ranch

Samson Resources!Wolfcamp Shale – Crockem/Reagan Co., Texas


q  ~6,200 net acres q  JV with EOG q  EOG tes2ng first three horizontal wells within JV q  Samson carried in first three wells

Devon Univ. 43-‐15 #1H 6th Day of Clean Up Rates of

207 BOPD + 382 BLW + 0.233 MMCFGPD

El Paso Univ. 43-‐19 #1 24 Hour Test 575 BOPD

+ 0.50 MMCFGPD

EOG Univ. 40-‐14 #1 Peak Rates of 935 BOPD

+ 0.83 MMCFGPD

EOG Linthicum M #1 Peak Rates of 809 BOPD

+ 0.89 MMCFGPD

Devon Univ. 52-‐10 #1H Rpt. Rates of 425 BOPD + 0.503 MMCFGPD

Highmount Univ. 55 10-‐2 Tested 425 BOPD + 0.233

MMCFGPD

EOG Univ. 38 #0601H Peak Rates of 862 BOPD

+ 0.714 MMCFGPD

Approach Univ. 45 C #803H Rpt. Rates of 931 BOPD + 0.615 MMCFGPD

El Paso Univ. 43-‐18 #1 Rpt. Rates of 408 BOPD + 0.609 MMCFGPD

Samson’s Acreage

EOG Acreage

EOG/Samson JV Outline

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