Exhibit 99.2
 | QUARTERLY REPORT for the period ended 30 September 2018 |
FINANCIAL HIGHLIGHTS
| - | Average net production for the quarter ended 30 September 2018 was 598 barrels of oil equivalent per day, up 12% from the quarter ended 30 June 2018. |
| - | Current 30 day production rate (as at October 2018) , is averaging 1,024 BOPD (on a gross Operated basis) and approximately 716 BOD net to Samson an increase of 21% over the September Quarter rate |
| - | Production from the Foreman Butte project increased from the June quarter total of 47,815 barrels of oil (net production) to 53,414 barrels of oil for the September 2018 quarter. The increase in production is due to the workover program Samson has put in place following the acquisition and refurbishment of its workover rig. |
| - | The Company has acquired a workover rig and this rig has been refurbished, transported to Williston and commenced its first workover in February. During the quarter, 17 wells have been returned to production. These workovers have added around 328 BOPD (on a gross basis), equating to approximately 230 BOPD on a net basis to the projects output. |
Prior 12 month production by quarter:
| | | Q4 2017 | | | Q1 2018 | | | Q2 2018 | | | Q3 2018 | |
| OIL, BO | | | 46,912 | | | | 34,390 | | | | 47,097 | | | | 53,414 | |
| GAS, MCF | | | 4,207 | | | | 4,101 | | | | 7,046 | | | | 2,578 | |
| BOE | | | 47,613 | | | | 35,074 | | | | 48,271 | | | | 53,844 | |
| BOEPD | | | 529 | | | | 390 | | | | 536 | | | | 598 | |
* Does not include gas produced for which we have not yet received the revenue.
Estimated net production and revenue:
| | | OIL Bbls | | | OIL US$ | | | GAS Mscf | | | GAS US$ | | | TOTAL US$ | |
| September 2018 Quarter | | | 53,414 | | | | 3,318,384 | | | | 2,578 | | | | 13,266 | | | | 3,331,650 | |
| June 2018 Quarter | | | 47,540 | | | | 2,913,527 | | | | 7,046 | | | | 28,707 | | | | 2,949,563 | |
Average commodity prices:
| | | OIL US$/Bbl | | | GAS
US$/Mscf | |
| September 2018 Quarter | | $ | 62.13 | | | $ | 5.15 | |
| June 2018 Quarter | | $ | 61.28 | | | $ | 4.07 | |
In some cases revenue is yet to be received and is therefore an estimate.
Samson Oil & Gas Limited Level 16, AMP Building, 140 St Georges Terrace, Perth WA 6000 T: +618 9220 9830F: +618 9220 9820ABN: 25 009 069 005ASX: SSN | Samson Oil & Gas USA 1131, 17th Street, Suite 710, Denver Colorado 80202 T: +1 303 295 0344F: +1 303 295 1961 |
SAMSON OIL & GAS LIMITED
September 2018 Quarterly Report
LAND
| PROJECT | | BASIN | | STATE | | COUNTY | | NET ACRES |
| Hawk Springs | | DJ | | Wyoming | | Goshen | | 40 |
| Roosevelt | | Williston | | Montana | | Roosevelt | | 2,230 |
| Rainbow | | Williston | | North Dakota | | Williams | | 294 |
| Foreman Butte | | Williston | | North Dakota/Montana | | Numerous | | 51,305 |
PROJECTS
Rainbow Field: Williams County, North Dakota
Mississippian Bakken Formation, Williston Basin
Gladys 1-20H
Samson 23% Working Interest
Kraken Operating, LLC, the operator of the Gladys 1-20H well, has been producing this well at an average rate of 74 BOPD and 86 MCFPD during the quarter. There are 6 additional Bakken/Three Forks drilling locations on this 1280 acre lease.
Foreman Butte Project: McKenzie & Williams Counties, North Dakota and Richland, Roosevelt, Sheridan Counties, Montana
Mississippian Madison Formation, Williston Basin
Samson 87% Operated Average Working Interest
The previously announced sale transaction for this project did not close as expected on 15 October 2018. Samson is continuing to work with the existing buyer and also actively seeking alternative buyers for the project. The increase in the oil price and maintenance of production levels has seen the value of this project increase from that last presented to the sale market.
It would be Samson’s intention to retain some working interest in the Home Run Field, within the Foreman Butte project. It is the largest area oil field in Samson’s portfolio. It was developed on a 640 acre spacing pattern and our engineering and geologic analyses have determined that only 3.2% of the original oil in place has been recovered to date. Given that oil fields can recover up to 20% of their oil in place, there would appear to be significant un-developed oil to be recovered from this field.
Samson averaged a gross 833 BOPD from its operated wells in the Foreman Butte Project this quarter. The production has increased by 16% from the previous Operate production rate for the June Quarter of 704 BOPD.
LIQUIDITY
Sources of cash for the next quarter are as follows:
| | | US$(’000’s) | |
| Current cash on hand | | | 1,390 | |
| Cash receipts from June quarter oil and gas sales* | | | 1,132 | |
| TOTAL | | | 2,522 | |
* Estimate based on realized June quarter production and $61 oil price (indicative of estimated oil pricing), allowing for a one month delay between production and cash receipt.
SAMSON OIL & GAS LIMITED
September 2018 Quarterly Report
FINANCIAL
Mutual of Omaha Credit Facility
Following the lapsing of the purchase and sale agreement, Mutual of Omaha have the right to seek alternative actions for repayment but have not done so at the date of this report.
Foreign Exchange Rates
The closing A$:US$ exchange rate on 30 September 18 was $0.72 The average A$:US$ exchange rate for the quarter was $0.73.
The Company’s cash position at 30 September 2018 was as follows:
| | | US$(‘000’s) | |
| Cash at bank on deposit | | | 1,390 | |
Hedging
| Product | | Start Date | | End Date | | Volume (BO/Mmbtu) | | | Floor $ | | | Ceiling $ | |
| WTI | | 1 October 2018 | | 31 Dec 2018 | | | 40,480 | | | | 45.00 | | | | 56.00 | |
| Henry Hub | | 1 November 2018 | | 31 Dec 2018 | | | 20,130 | | | | 2.65 | | | | 2.90 | |
As at 30 September 2018, the value of Samson’s hedging program was ($0.7 million). At 19 October 2018, the value of Samson’s hedging program was also approximately ($0.5 million).
For and on behalf of the Board of
SAMSON OIL & GAS LIMITED
| TERRY BARR | Information contained in this report relating to hydrocarbon reserves was compiled by the Managing Director of Samson Oil & Gas Ltd., T M Barr a Geologist who holds an Associateship in Applied Geology and is a fellow of the Australian Institute of Mining and Metallurgy who has 30 years relevant experience in the oil & gas industry. |
| Managing Director |
| |
| 31 October 2018 |
SAMSON OIL & GAS LIMITED
September 2018 Quarterly Report
Rule 5.3
Appendix 5B
Mining exploration entity and oil and gas exploration entity quarterly report
Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16
| Name of entity |
| Samson Oil and Gas Limited |
| ABN | | Quarter ended (“current quarter”) |
| 25 009 069 005 | | 30 September 2018 |
| Consolidated statement of cash flows | | Current quarter
$US’000 | | | Year to date
(3 months)
$US’000 | |
| 1. | | Cash flows from operating activities | | | | | | |
| 1.1 | | Receipts from customers | | | 4,220 | | | | 4,220 | |
| 1.2 | | Payments for | | | | | | | | |
| | | (a) exploration & evaluation | | | (28 | ) | | | (28 | ) |
| | | (b) development | | | (43 | ) | | | (43 | ) |
| | | (c) production | | | (2,424 | ) | | | (2,424 | ) |
| | | (d) staff costs | | | (307 | ) | | | (307 | ) |
| | | (e) administration and corporate costs | | | (184 | ) | | | (184 | ) |
| 1.3 | | Dividends received (see note 3) | | | - | | | | - | |
| 1.4 | | Interest received | | | - | | | | - | |
| 1.5 | | Interest and other costs of finance paid | | | (274 | ) | | | (274 | ) |
| 1.6 | | Income taxes paid | | | - | | | | - | |
| 1.7 | | Research and development refunds | | | - | | | | - | |
| 1.8 | | Other (provide details if material) Hedging | | | (510 | ) | | | (510 | ) |
| | | Abandonment costs | | | - | | | | - | |
| 1.9 | | Net cash from / (used in) operating activities | | | 450 | | | | 450 | |
| | | | | | | | | | | |
| 2. | | Cash flows from investing activities | | | | | | | | |
| 2.1 | | Payments to acquire: | | | | | | | | |
| | | (a) property, plant and equipment | | | - | | | | - | |
| | | (b) tenements (see item 10) | | | - | | | | - | |
| | | (c) investments | | | - | | | | - | |
| | | (d) other non-current assets | | | - | | | | - | |
SAMSON OIL & GAS LIMITED
September 2018 Quarterly Report
| Consolidated statement of cash flows | | Current quarter
$US’000 | | | Year to date
(3 months)
$US’000 | |
| 2.2 | | Proceeds from the disposal of: | | | | | | | | |
| | | (a) property, plant and equipment | | | 700 | | | | 700 | |
| | | (b) tenements (see item 10) | | | - | | | | - | |
| | | (c) investments | | | - | | | | - | |
| | | (d) other non-current assets | | | - | | | | - | |
| 2.3 | | Cash flows from loans to other entities | | | - | | | | - | |
| 2.4 | | Dividends received (see note 3) | | | - | | | | - | |
| 2.5 | | Other (provide details if material) | | | - | | | | - | |
| 2.6 | | Net cash from / (used in) investing activities | | | 700 | | | | 700 | |
| | | | | | | | | | | |
| 3. | | Cash flows from financing activities | | | | | | | | |
| 3.1 | | Proceeds from issues of shares | | | - | | | | - | |
| 3.2 | | Proceeds from issue of convertible notes | | | - | | | | - | |
| 3.3 | | Proceeds from exercise of share options | | | - | | | | - | |
| 3.4 | | Transaction costs related to issues of shares, convertible notes or options | | | - | | | | - | |
| 3.5 | | Proceeds from borrowings | | | - | | | | - | |
| 3.6 | | Repayment of borrowings | | | - | | | | - | |
| 3.7 | | Transaction costs related to loans and borrowings | | | - | | | | - | |
| 3.8 | | Dividends paid | | | - | | | | - | |
| 3.9 | | Other (provide details if material) | | | - | | | | - | |
| 3.10 | | Net cash from / (used in) financing activities | | | - | | | | - | |
| | | | | | | | | | | |
| 4. | | Net increase / (decrease) in cash and cash equivalents for the period | | | | | | | | |
| 4.1 | | Cash and cash equivalents at beginning of period | | | 1,376 | | | | 1,376 | |
| 4.2 | | Net cash from / (used in) operating activities (item 1.9 above) | | | 450 | | | | 450 | |
| 4.3 | | Net cash from / (used in) investing activities (item 2.6 above) | | | 700 | | | | 700 | |
| 4.4 | | Net cash from / (used in) financing activities (item 3.10 above) | | | - | | | | - | |
SAMSON OIL & GAS LIMITED
September 2018 Quarterly Report
| Consolidated statement of cash flows | | Current quarter
$US’000 | | | Year to date
(3 months)
$US’000 | |
| 4.5 | | Effect of movement in exchange rates on cash held | | | (4 | ) | | | (4 | ) |
| 4.6 | | Cash and cash equivalents at end of period | | | 2,522 | | | | 2,522 | |
| 5. | | Reconciliation of cash and cash equivalents
at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts | | Current quarter
$US’000 | | | Previous quarter
$US’000 | |
| 5.1 | | Bank balances | | | 2,522 | | | | 2,522 | |
| 5.2 | | Call deposits | | | - | | | | - | |
| 5.3 | | Bank overdrafts | | | - | | | | - | |
| 5.4 | | Other (provide details) | | | - | | | | - | |
| 5.5 | | Cash and cash equivalents at end of quarter (should equal item 4.6 above) | | | 2,522 | | | | 2,522 | |
| 6. | | Payments to directors of the entity and their associates | | Current quarter
$US'000 | |
| 6.1 | | Aggregate amount of payments to these parties included in item 1.2 | | | 140 | |
| 6.2 | | Aggregate amount of cash flow from loans to these parties included in item 2.3 | | | - | |
| 6.3 | | Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2 | | | | |
| | | | | | | |
Salary and Directors Fees
|
| 7. | | Payments to related entities of the entity and their associates | | Current quarter
$US'000 | |
| 7.1 | | Aggregate amount of payments to these parties included in item 1.2 | | | - | |
| 7.2 | | Aggregate amount of cash flow from loans to these parties included in item 2.3 | | | - | |
| 7.3 | | Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2 | | | | |
SAMSON OIL & GAS LIMITED
September 2018 Quarterly Report
| 8. | | Financing facilities available
Add notes as necessary for an understanding of the position | | Total facility amount
at quarter end
$US’000 | | | Amount drawn at
quarter end
$US’000 | |
| 8.1 | | Loan facilities | | | 24,000 | | | | 23,902 | |
| 8.2 | | Credit standby arrangements | | | - | | | | - | |
| 8.3 | | Other (please specify) | | | - | | | | - | |
| 8.4 | | Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well. | | | | | | | | |
| | | | | | | | | | | |
| Mutual of Omaha Bank credit facility - $23.9m. The interest rate is 5.25% on the reserve based lending facility and the interest rate is 6.5% on the term loan with a balance of $4.0 million. Both loans mature October 2018 and are fully secured against Samson’s oil and gas assets. |
| 9. | | Estimated cash outflows for next quarter | | $US’000 | |
| 9.1 | | Exploration and evaluation | | | - | |
| 9.2 | | Development | | | - | |
| 9.3 | | Production | | | 1,500 | |
| 9.4 | | Staff costs | | | 450 | |
| 9.5 | | Administration and corporate costs | | | 600 | |
| 9.6 | | Other (provide details if material) | | | - | |
| 9.7 | | Total estimated cash outflows | | | 2,550 | |
| 10. | Changes in
tenements
(items 2.1(b) and
2.2(b) above) | | Tenement
reference
and
location | | Nature of interest | | Interest at
beginning
of quarter | | Interest at
end of
quarter |
| 10.1 | Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced | | | | | | | | |
| 10.2 | Interests in mining tenements and petroleum tenements acquired or increased | | | | | | | | |
SAMSON OIL & GAS LIMITED
September 2018 Quarterly Report
Compliance statement
| 1 | This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A. |
| 2 | This statement gives a true and fair view of the matters disclosed. |
| Sign here: |  | Date: 31 October 2018 |
| | (Director/Company secretary) | |
Notes
| 1. | The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report. |
| 2. | If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report. |
| 3. | Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity. |
