Compiled by Staff

SAMSON OIL & GAS IN GOSHEN COUNTY DEAL

Samson Oil & Gas Limited has a binding agreement with a large U.S.-based independent natural gas and oil producer to sell 24,166 acres of its 40,240 acre holdings in Goshen County for a cash purchase price expected to be between $61 million and $79 million.

Samson’s Goshen County holdings were acquired several years ago reflecting the Company’s view that the Niobrara Formation represented an oil play that could be developed using horizontal drilling techniques. These techniques and the ability to sequentially fracture stimulate this type of rock in the Williston Basin have rapidly improved over the last two years. 

The company saysa it expects to see a rapid development of the Niobrara Formation as these techniques are applied to this rock. There have already been some early successes by other companies which have confirmed this potential and raised the profile of the oil play.

REX ENERGY BUYS DJ BASIN ACREAGE

Rex Energy Corporation has announced it has entered into a purchase and sale agreement with an undisclosed private company to acquire more than18,000 net acres in the DJ Basin for approximately $18.7 million. The acreage is located near the Silo Field, a producing Niobrara oil field in Laramie County, Wyoming. The acquisition is expected to close in the next thirty days subject to Rex Energy’s due diligence review.

Benjamin W. Hulburt, Rex Energy President and CEO, commented,“I am extremely pleased to be acquiring this acreage in the Niobrara oil fairway in the DJ Basin. After this acquisition is closed, Rex Energy will control approximately 11,800 gross (6,700 net) prospective Niobrara Shale acres in Weld County, Colorado and 48,500 gross (32,400 net) acres in Laramie County, Wyoming. Our average acreage cost in the DJ Basin is still relatively low at $600 per acre.

“We plan to begin our horizontal Niobrara Shale well drilling program during July 2010. Although this play is not yet at the stage where we can update our production guidance through the end of this year and into 2011 to account for this significant new oil asset, we believe our Niobrara position has the potential to be a very significant growth driver for the company.”

WYOMING GROUSE TEAM ADDS PROTECTED HABITAT AREAS

A state team released new recommendations this week for preserving sage grouse in Wyoming, including adding more than 300,000 acres of  ”core population” land that’s designated as protected habitat for the birds. The core areas now span roughly one quarter of the state and, according to the team, include more than 80% of the grouse population in Wyoming. You can view maps of the core areas on the Wyoming Game and Fish Department website.

In 2007 Gov. Freudenthal formed the Sage Grouse Implementation Team as part of the state’s effort to stave off a federal decision to list the birds as a threatened or endangered species. The Governor asked for an updated assessment earlier this year.

“We hope these recommendations will be the guide for the next five years, which is what they figure it’s going to take to kind of get things stabilized in the core areas as well as get some other research done,” Freudenthal said.

VOYAGER IN LARAMIE COUNTY - NORTHERN DJ BASIN PLAY

Billings,Mon-based Voyager Oil & Gas Inc., will explore and develop 48,000 net acres prospective for oil in Cretaceous Niobrara held by Slawson Exploration Co. in the northern Denver-Julesberg basin.

Slawson will begin a continuous drilling program in early July with an initial series of three test wells expected to be completed by October. If results are good, Slawson will target 57 more locations throughout 2011. The acreage is in Weld County, Colo., near high-rate, horizontal Niobrara completions.

Voyager has purchased a 50% working interest in the 48,000-acre block for $7.5 million and will participate on a heads-up basis on all wells drilled, as well as participate for its proportionate working interest in all other acreage acquired in an area of mutual Interest consisting of all of Weld County and Laramie County, Wyo.

According to the announcement, Voyager will fund the purchase price and initial drilling commitments out of cash on hand and cash flow from current production. The company controls 147,000 net acres in a handful of primary prospect areas, including 24,000 net acres targeting the Niobrara formation in Colorado and Wyoming, and a like size of acreage in the Bakken formation in North Dakota and Montana.