Exhibit 99.1
 | QUARTERLY REPORT for the period ended 30 June 2019 |
FINANCIAL HIGHLIGHTS
| | - | Average net production for the quarter ended 30 June 2019 was 650 barrels of oil equivalent per day, increase of 24% from the quarter ended 31 March 2019 of 544 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 July 2019), is averaging 1,090 BOPD (on a gross Operated basis) and approximately 780 BODP net to Samson. This increase from June quarter is due to weather improvements which brought wells, previously shut in due to weather conditions, back on line. |
Prior 12 month production by quarter:
| | | Q3 2018 | | | Q4 2018 | | | Q1 2019 | | | Q2 019 | |
| OIL, BO | | | 54,779 | | | | 63,618 | | | | 46,258 | | | | 59,135 | |
| GAS, MCF | | | 11,941 | | | | 10,583 | | | | 5,213 | | | | 7,882 | |
| BOE | | | 56,769 | | | | 65,381 | | | | 47,157 | | | | 60,448 | |
| BOEPD | | | 630 | | | | 726 | | | | 524 | | | | 650 | |
Estimated net production and revenue:
| | | OIL Bbls | | | OIL US$ | | | GAS Mscf | | | GAS US$ | | | TOTAL US$ | |
| June 2019 Quarter | | | 59,135 | | | | 2,849,994 | | | | 7,882 | | | | 31.116 | | | | 2,881,110 | |
| March 2019 Quarter | | | 46,258 | | | | 2,246,288 | | | | 5,213 | | | | 16,368 | | | | 2,262,656 | |
Average commodity prices:
| | | OIL US$/Bbl | | | GAS S$/Mscf | |
| June 2019 Quarter | | $ | 59,76 | | | $ | 2.63 | |
| March 2019 Quarter | | $ | 48.56 | | | $ | 3.14 | |
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 are set monthly by our marketer and are generally around $4 per barrel, the differential for the June 2019 quarter averaged $9.39.
IN FILL DEVELOPMENT
The first well in the infill development program was the Gonzales 1-8H well and this well achieved a measured total depth of 11,736 feet and lateral length of 2,062 feet within the Ratcliffe reservoir. The lateral length was less than planned, however represented an opportunity to test the oil productive capacity of the reservoir at this location.
The well has been put on pump since June 13th and has recovered a total of 57 bbls of oil from July 19th. The well had previously recovered around 7,600 barrels of water before this oil cut appeared. The produced fluid early in this recovery had a density of 1.13 representing a significant fresh water influence representing the drilling fluid. This density has increased to a current density of 1.15 indicating that the produced fluid is approaching the 1.2 density that represents formation water.
The oil cut after the initial arrival of oil, has averaged 4.5%.
| Samson Oil & Gas Limited | Samson Oil & Gas USA |
| Level 16, AMP Building, 140 St Georges Terrace, Perth WA 6000 | 1131, 17 Street, Suite 710, Denver Colorado 80202 |
| T: +618 9220 9830F: +618 9220 9820ABN: 25 009 069 005ASX: SSN | T: +1 303 295 0344F: +1 303 295 1961 |
SAMSON OIL & GAS LIMITED
June 2019 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 50 BOPD and 61 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. The infill drill project detailed in the earlier part of this report has commenced.
LIQUIDITY
Sources of cash for the next quarter are as follows:
| | | US$(’000’s) | |
| Current cash on hand | | | 3.238 | |
| Cash receipts from June oil and gas sales* | | | 1,624 | |
| TOTAL | | | 4,862 | |
* Estimate based on realized June quarter production and net $48.75 oil price, allowing for a one month delay between production and cash receipt.
FINANCIAL
On April 9, Samson Oil and Gas, USA, Inc., a wholly owned subsidiary of Samson oil and Gas Limited closed a $33.5 million refinancing with AEP I FINCO LLC. The new facility has a 5 year term and an interest rate of LIBOR + 10.5%. The proceeds of the new debt facility will be used to retire the existing line of credit, repay outstanding creditors and to provide working capital to pursue an infill drilling program.
Foreign Exchange Rates
The closing A$:US$ exchange rate on 30 June 2019 was $1.42. The average A$:US$ exchange rate for the quarter was $1.42.
The Company’s cash position at 30 June 2019 was as follows:
| | | US$(’000’s) | |
| Cash at bank on deposit | | | 3,238 | |
| | | | | |
SAMSON OIL & GAS LIMITED
June 2019 Quarterly Report
As a result of the refinancing, Samson’s financial condition and liquidity has improved, and Samson plans to commence the process of relisting on the ASX.
Hedging
Samson has entered into a series of hedges for 767,084 bbl of crude oil production for the next four years at an average price of $55.45/bbl and for 240,000 MMcf of natural gas costless collars with a weighted average put at $2.53 per MMBTU and a weighted average of call of $2.77 per MMBTU. A price point between the put and the call means that no settlement is due.
At 28th June oil price of $54.66 the mark to market value for the oil swaps is a positive $0.35 million, and the gas cost less collars have a negative value of $0.08 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 |
| |
| 30 July 2019 |
SAMSON OIL & GAS LIMITED
June 2019 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 June 2019 |
| Consolidated statement of cash flows | | Current quarter
$US’000 | | | Year to date
(12 months) $US’000 | |
| 1. | | Cash flows from operating activities | | | | | | | | |
| 1.1 | | Receipts from customers | | | (305 | ) | | | 12,029 | |
| 1.2 | | Payments for | | | | | | | | |
| | | (a) exploration & evaluation | | | | | | | 72 | |
| | | (b) development | | | | | | | | |
| | | (c) production | | | 2,874 | | | | 10,903 | |
| | | (d) staff costs | | | 202 | | | | 808 | |
| | | (e) administration and corporate costs | | | 562 | | | | 1,868 | |
| 1.3 | | Dividends received (see note 3) | | | | | | | | |
| 1.4 | | Interest received | | | | | | | | |
| 1.5 | | Interest and other costs of finance paid | | | 1,182 | | | | 2,345 | |
| 1.6 | | Income taxes paid | | | | | | | | |
| 1.7 | | Research and development refunds | | | | | | | | |
| 1.8 | | Other (provide details if material) Hedging | | | 140 | | | | 915 | |
| | | Abandonment costs | | | | | | | | |
| 1.9 | | Net cash from / (used in) operating activities | | | (5,265 | ) | | | (4,884 | ) |
| | | | | | | | | | | |
| 2. | | Cash flows from investing activities | | | | | | | | |
| 2.1 | | Payments to acquire: | | | | | | | | |
| | | (a) property, plant and equipment | | | 1,582 | | | | 1,582 | |
| | | (b) tenements (see item 10) | | | - | | | | - | |
| | | (c) investments | | | - | | | | - | |
| | | (d) other non-current assets | | | - | | | | - | |
SAMSON OIL & GAS LIMITED
June 2019 Quarterly Report
| Consolidated statement of cash flows | | Current quarter $US’000 | | | Year to date
(12 months) $US’000 | |
| 2.2 | | Proceeds from the disposal of: | | | | | | | | |
| | | (a) property, plant and equipment | | | - | | | | | |
| | | (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 | | | (1,582 | ) | | | (1,582 | ) |
| | | | | | | | | | | |
| 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 | | | 33,500 | | | | 33,500 | |
| 3.6 | | Repayment of borrowings | | | (23,867 | ) | | | (23,867) | |
| 3.7 | | Transaction costs related to loans and borrowings | | | (1,305 | ) | | | (1,305) | |
| 3.8 | | Dividends paid | | | - | | | | - | |
| 3.9 | | Other (provide details if material) | | | - | | | | - | |
| 3.10 | | Net cash from / (used in) financing activities | | | 8,328 | | | | 8,328 | |
| | | | | | | | | | | |
| 4. | | Net increase / (decrease) in cash and cash equivalents for the period | | | | | | |
| 4.1 | | Cash and cash equivalents at beginning of period | | | 1,757 | | | | 1,376 | |
| 4.2 | | Net cash from / (used in) operating activities (item 1.9 above) | | | (5,265 | ) | | | (4,884 | ) |
| 4.3 | | Net cash from / (used in) investing activities (item 2.6 above) | | | (1,582 | ) | | | (1,582 | ) |
| 4.4 | | Net cash from / (used in) financing activities (item 3.10 above) | | | 8,328 | | | | 8,328 | |
| 4.5 | | Effect of movement in exchange rates on cash held | | | | | | | | |
| 4.6 | | Cash and cash equivalents at end of period | | | 3,238 | | | | 3,238 | |
SAMSON OIL & GAS LIMITED
June 2019 Quarterly Report
| 5. | | Reconciliation of cash and cash equivalents | | Current quarter
$US’000 | | | Previous quarter
$US’000 | |
| | | at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts | | | | | | | | |
| 5.1 | | Bank balances | | | 3,238 | | | | 953 | |
| 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) | | | 3,238 | | | | 953 | |
| 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
June 2019 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 | | | 33,500 | | | | 33.500 | |
| 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. | | | | | | | | |
| | | | | | | | | | | |
On April 9, Samson Oil and Gas, USA, Inc., a wholly owned subsidiary of Samson oil and Gas Limited closed a $33.5 million refinancing with AEP I FINCO LLC. The new facility has a 5 year term and an interest rate of LIBOR + 10.5%.
| 9. | | Estimated cash outflows for next quarter | | | $US’000 | |
| 9.1 | | Exploration and evaluation | | | | - | |
| 9.2 | | Development | | | | 500 | |
| 9.3 | | Production | | | | 2,000 | |
| 9.4 | | Staff costs | | | | 650 | |
| 9.5 | | Administration and corporate costs | | | | 600 | |
| 9.6 | | Other (provide details if material) | | | | - | |
| 9.7 | | Total estimated cash outflows | | | | 3,750 | |
| 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
June 2019 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 July 2019 |
| (Director/Company secretary) | |
Print name:
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. |
