Exhibit 99.1
 | QUARTERLY REPORT for the period ended 31 December 2018 |
FINANCIAL HIGHLIGHTS
| - | Average net production for the quarter ended 31 December 2018 was 726 barrels of oil equivalent per day, up 15% from the quarter ended 30 September 2018 of 631 barrels of oil equivalent per day (production numbers are based on barrels sold and doesn’t include movements in oil tank inventory). |
| - | Current 30 day production rate (as at January 2018), is averaging 900 BOPD (on a gross Operated basis) and approximately 630 BODP net to Samson. This decrease is modest compared to the December quarter, and expected to be reversed given that the workover rig that was stood down for December has recommenced operations in mid January. |
| - | Production from the Foreman Butte project increased from the September quarter total of 54,779 barrels of oil (net production) to 63,618 barrels of oil for the December 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. |
Prior 12 month production by quarter:
| | | Q1 2018 | | | Q2 2018 | | | Q3 2018 | | | Q4 2018 | |
| OIL, BO | | | 34,390 | | | | 47,097 | | | | 54,779 | | | | 63,618 | |
| GAS, MCF | | | 4,101 | | | | 7,046 | | | | 11,941 | | | | 10,583 | |
| BOE | | | 35,074 | | | | 48,271 | | | | 56,769 | | | | 65,381 | |
| BOEPD | | | 390 | | | | 536 | | | | 631 | | | | 726 | |
* 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$ | |
| December 2018 Quarter | | | 63,618 | | | | 2,846,027 | | | | 10,583 | | | | 50,952 | | | | 2,896,979 | |
| September 2018 Quarter | | | 54,779 | | | | 3,564,224 | | | | 11,944 | | | | 66,270 | | | | 3,628,643 | |
Average commodity prices:
| | | OIL US$/Bbl | | | GAS US$/Mscf | |
| December 2018 Quarter | | $ | 44.73 | | | $ | 4.85 | |
| September 2018 Quarter | | $ | 65.07 | | | $ | 5.54 | |
In some cases revenue is yet to be received and is therefore an estimate.
The differential (the difference between WTI and local pricing) for Williston Basin crude increased to $21 per barrel for December 2018 as a result of additional Canadian crude being available. Williston differentials are set monthly by our marketer and are generally around $4 per barrel, the differential has been set for January 2019at $9.46 per barrel and $4.33 for February 2019. This return to “normal” is a result of several factors including the mandatory production curtailment by the State of Alberta and a higher demand for export barrels at the Gulf Coast
| Samson Oil & Gas Limited | Samson Oil & Gas USA |
| Level 16, AMP Building, 140 St Georges Terrace, Perth WA 6000 | 1131, 17th Street, Suite 710, Denver Colorado 80202 |
| T: +618 9220 9830F: +618 9220 9820ABN: 25 009 069 005 ASX: SSN | T: +1 303 295 0344F: +1 303 295 1961 |
SAMSON OIL & GAS LIMITED
December 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 146 BOPD and 172 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 and that contract was terminated.
Samson has three initiatives in place and is pursuing:
| 1) | A refinance of the existing debt facility, this process is close to finalization with the necessary due diligence being undertaken |
| 2) | A farmout of the considerable upside in the Home Run Field. This field the largest in the portfolio and has a modest PDP reserve and therefore not effected as much by the recent downturn in oil prices The field however has large PUD reserve which is not valued in the trade sale market and is accordingly not subject to the value gap which has developed because of that price deterioration. |
| 3) | An asset sale to the previously engaged buyer or another buyer, this is proving to be difficult because of the lower oil price situation |
Samson averaged a gross 1043 BOPD from its operated wells in the Foreman Butte Project this quarter. The production has increased by 25% from the previous gross operated production rate for the September quarter of 833 BOPD. (These production numbers represent all barrels produced and includes some oil that remains in oil tank inventory at the end of the quarter).
LIQUIDITY
Sources of cash for the next quarter are as follows:
| | | US$(’000’s) | |
| Current cash on hand | | | 1,757 | |
| Cash receipts from December quarter oil and gas sales* | | | 712 | |
| TOTAL | | | 2,469 | |
SAMSON OIL & GAS LIMITED
December 2018 Quarterly Report
* Estimate based on realized December quarter production and $44 oil price (indicative of estimated oil pricing), allowing for a one month delay between production and cash receipt.
FINANCIAL
Mutual of Omaha Credit Facility
Following the lapsing of the purchase and sale agreement, Mutual of Omaha have the right to seek alternative actions for repayment but have not done so at the date of this report.
Foreign Exchange Rates
The closing A$:US$ exchange rate on 31 December 2018 was $0.71 The average A$:US$ exchange rate for the quarter was $0.72.
The Company’s cash position at 31 December 2018 was as follows:
| | | US$(‘000’s) | |
| Cash at bank on deposit | | | 1,757 | |
Hedging
Samson is currently unhedged.
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 January 2019 |
SAMSON OIL & GAS LIMITED
December 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 | | 31 December 2018 |
| Consolidated statement of cash flows | | Current quarter
$US’000 | | | Year to date
(6 months)
$US’000 | |
| 1. | | Cash flows from operating activities | | | | | | | | |
| 1.1 | | Receipts from customers | | | 4,467 | | | | 8,687 | |
| 1.2 | | Payments for | | | | | | | | |
| | | (a) exploration & evaluation | | | (11 | ) | | | (39 | ) |
| | | (b) development | | | (214 | ) | | | (257 | ) |
| | | (c) production | | | (3,180 | ) | | | (5,604 | ) |
| | | (d) staff costs | | | (237 | ) | | | (544 | ) |
| | | (e) administration and corporate costs | | | (840 | ) | | | (1,024 | ) |
| 1.3 | | Dividends received (see note 3) | | | - | | | | - | |
| 1.4 | | Interest received | | | - | | | | - | |
| 1.5 | | Interest and other costs of finance paid | | | (482 | ) | | | (756 | ) |
| 1.6 | | Income taxes paid | | | - | | | | - | |
| 1.7 | | Research and development refunds | | | - | | | | - | |
| 1.8 | | Other (provide details if material) Hedging | | | (265 | ) | | | (775 | ) |
| | | Abandonment costs | | | - | | | | - | |
| 1.9 | | Net cash from / (used in) operating activities | | | (762 | ) | | | (312 | ) |
| | | | | | | | | | | |
| 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
December 2018 Quarterly Report
| Consolidated statement of cash flows | | Current quarter
$US’000 | | | Year to date
(6 months)
$US’000 | |
| 2.2 | | Proceeds from the disposal of: | | | - | | | | | |
| | | (a) property, plant and equipment | | | | | | | 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 | |
| | | | | | | | | | | |
| 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 | | | 2,522 | | | | 1,376 | |
| 4.2 | | Net cash from / (used in) operating activities (item 1.9 above) | | | (762 | ) | | | (312 | ) |
| 4.3 | | Net cash from / (used in) investing activities (item 2.6 above) | | | - | | | | 700 | |
| 4.4 | | Net cash from / (used in) financing activities (item 3.10 above) | | | - | | | | - | |
SAMSON OIL & GAS LIMITED
December 2018 Quarterly Report
| Consolidated statement of cash flows | | Current quarter
$US’000 | | | Year to date
(6 months)
$US’000 | |
| 4.5 | | Effect of movement in exchange rates on cash held | | | (3 | ) | | | (7 | ) |
| 4.6 | | Cash and cash equivalents at end of period | | | 1,757 | | | | 1,757 | |
| 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 | | | 1,757 | | | | 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) | | | 1,757 | | | | 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
December 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 matured 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
December 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 January 2019 |
| | (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. |
SAMSON OIL & GAS LODGES QUARTERLY REPORT AND APPENDIX 5B FOR QUARTER ENDED 31 DECEMBER 2018
Denver January 30, 2019, Perth January 31, 2019
Samson Oil & Gas Limited (ASX: SSN OTC:SSNYY) advises that it has filed its Quarterly Report and Appendix 5B for the quarter ended 31 December 2018. The report is now available on the Company’s website:
www.samsonoilandgas.com
For and on behalf of the board of
SAMSON OIL & GAS LIMITED
 | For further information please contact, Terry Barr, CEO on 303 296 3994 (US office) or 970 389 5047 (US cell) |
| TERRY BARR |
| Managing Director |
Statements made in this press release that are not historical facts may be forward looking statements, including but not limited to statements using words like “may”, “believe”, “expect”, “project”, “anticipate”, “should” or “will.” Actual results may differ materially from those projected in any forward-looking statement. There are a number of important factors that could cause actual results to differ materially from those anticipated or estimated by any forward looking information, including uncertainties inherent in estimating the methods, timing and results of exploration activities. A description of the risks and uncertainties that are generally attendant to Samson and its industry, as well as other factors that could affect Samson’s financial results, are included in the prospectus and prospectus supplement for its recent Rights Offering as well as the Company's report to the U.S. Securities and Exchange Commission on Form 10-K, which are available at www.sec.gov/edgar/searchedgar/webusers.htm.
