A couple of months back I expressed doubts over whether Samson Oil & Gas
Successful first attempt
Samson has finished drilling its Defender US33 No. 2-29H well, and it's good news so far. Core analysis from the vertical section of the drilled hole indicates oil-saturated brittle carbonate sections. Since this is the first drilling for the company's Hawk Springs project in Niobrara, this should sound encouraging to shareholders. The well's 15-stage fracturing is expected to start by the end of October.
Following the sale of its Greater Green River Basin properties in Wyoming to Chesapeake Energy
Running a company with zero debt is not unique, though. Contango Oil & Gas
The just-finished fiscal year saw Samson's revenue grow 106% to $5.9 million, thanks to a combination of increased oil production and increased price realizations. This percentage growth -- despite the sale of properties -- should look impressive. The company seems to be making amends through it Bakken properties, where production is under way. With the North Dakota properties seeing completion of three development wells and awaiting fracture stimulation of another, things should look up from here.
A bargain Bakken stock?
It's also interesting to note that Samson's current price-to-book value is 2.77 -- well below the 12-month average of 4.16. With successful fellow Bakken operators Brigham Exploration
Foolish bottom line
While it's looking good so far for Samson, actual production should be visible only from the following quarter. Overall, management here seems to be on the right track. We at The Motley Fool will help you stay up to speed on the top news and analysis on Samson. You can start by adding it to your watchlist.