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Samson Resources!
Company Overview
Dave Adams Chief Execu2ve Officer
Samson Resources!Company History
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Leading U.S. E&P Operator with history of innova=on and success
1970 1980 1990 2000
1971: • Charles Schusterman
forms Samson Resources Company in Tulsa, OK to purchase marginal producing O&G proper2es
1973: • Samson begins an
ac2ve acquisi2on and drilling program focused on low-‐risk farm-‐outs
1980’s: • Samson focused on
improving financial structure
• Posi2oned Company to capitalize on opportuni2es going forward
Early 2000’s • Samson completes
largest acquisi2on in company history (San Juan Basin – 2005)
November 23, 1973: • Samson Resources
Company assumes opera2ons of Amerada Hess proper2es
Mid-‐1970’s: • Samson makes shiU
away from oil to gas to avoid policy concerns
• Capture aVrac2ve margins in gas market
1989 • First interna2onal
investment • The Company later
expanded its interna2onal porXolio
Mid 2000’s: • Divests Canadian / other interna2onal assets • Early entry into several emerging shale plays • Enters Bakken via JV with Con2nental (2005) • Enters Powder River Basin via JV with
Southwestern Produc2on (2009)
2011
December 21, 2011 • KKR acquires Samson
for $7.2 billion • $4.1 billion equity
contribu2on
Samson Resources!
Significant Exis=ng Resources Opera=onal Snapshot
Headquarters: Tulsa, OK
Total net acres: ~2.94 million
Total net risked resource
poten2al: +1,650 MMboe
R/P(1): ~10.1x
1H12 Produc=on Oil15%
Gas75%
NGL10%
6/30/12 Reserves
PDP63%PDNP
1%
PUD36%
XXX MMboe
XXX Mboe/d
Large, Diverse E&P Base
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A4 P aper Guide L ine
A4 P aper Guide L ine
Rockies (oil, liquids and gas plays)Net acreage: ~907,000
Net risked resource potential: 579 MMboe
Permian (oil plays)Net acreage: ~121,000
Horizontal Wolfcamp, C line S hale
North Louisiana / East Texas (oil, liquids & gas plays)Net acreage: 450,000
Net risked resource potential: 509 MMboe
Bakken (oil play)Net acreage: ~400,000
Net risked resource potential: 271 MMboe
Mid-‐continent (liquids rich gas plays)Net acreage: 700,000
Net risked resource potential: 354 MMboe
(1): Based on 2012E production.
Samson Resources!Extensive Drilling Inventory
• Samson has iden=fied approximately 9,200 gross drilling loca=ons (over 3,700 net) • Substan=al por=on of leasehold HBP, enabling Samson to focus on highest return drilling • 85% of drilling loca=ons are oil or liquids-‐rich wells
Drilling Inventory by Commodity
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Gas 47%
Oil 36%
NGL 17%
Samson Resources!Liquids-‐Driven Capital Plan
• 100% of the 2012E drilling budget dedicated to oil/liquids-‐weighted plays
• Es=mated capital of only ~$XXX million necessary to keep produc=on flat
• 10 operated rigs currently running
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2012E 2013E
• 2013E es=mated capital budget will be exclusively oil/liquids-‐focused
• 2013E capital expenditures size expected to be substan=ally similar to that of 2012E
Rockies61%
Mid-‐Continent
26%
East Texas13%
Rockies67%
Mid-‐Continent
27%
East Texas6%
Samson Resources!
Asset Overview
Robert Schaffitzel SVP – Corporate Development
Samson Resources!Overview
q Samson’s Rocky Mountain Division includes oil, liquids, and gas-‐rich producing and prospec2ve proper2es in four major producing Basins: Williston/Bakken, Powder River, Green River and San Juan
n Net Acreage: ~1,307,000
n Net Risked Resource Poten=al: 850 MMboe
n 6/30/2012 Produc=on: 42.7 Mboe/d
n Net iden=fied drilling loca=ons: 2,300
q Powder River Basin: Stacked oil plays provide a large inventory of future loca2ons for Samson to target oil rich opportuni2es
q Williston Basin: Recent performance has established core Three Forks development opportuni2es, while current Middle Bakken tes2ng allows for con2nued upside across the acreage
q Green River Basin: Has produced abundant oil and gas out of mul2ple reservoirs for over 60 years. Recent horizontal success in the Ft Union has further enhanced the economics of the exci2ng new play operated by Samson
q San Juan Basin: Mature dry gas asset with some future drilling. Samson seeks to maximize value in this region by reducing opera2ng costs and ac2vely managing the field
Overview of Rocky Mountain Division Asset Map
Williston Basin
Powder River Basin
Greater Green River Basin
San Juan Basin
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Samson Resources!
2 SRC Operated Rigs -‐ Ambrose
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Development Well Type Curve: $7.4 MM, 421 MBO, 350 MMCF > 25% IRR; Development Cost of $19.30 / BOE
Con=nental Planned Ac=vity
Bakken q Samson expects to run 2 operated rigs through 2012
q 15+ year inventory with 700 net iden2fied drilling loca2ons
q 271 MMboe net risked resource poten2al
Samson Resources!Rockies – Powder River Powder River Basin – Emerging Basin with Mul8ple Stacked Oil Targets
Overview Mul=ple Prospect Areas
q This area is a reliable source of low risk drilling loca2ons. Samson is currently focused on the execu2on of wells in a repeatable manner in an area delineated by ver2cal and horizontal wells. Samson has established a mul2-‐decade drilling inventory
n Net Acreage: ~275,000
n Net Risked Resource Poten=al: 380 MMboe
n Net Iden=fied Drilling Loca=ons: 1,100
q Sussex and Shannon:
n Ac2vity in the Sussex and Shannon has increased in recent months with Bill BarreV, Chesapeake and QEP leasing and drilling around Samson’s recent success
n Along with Samson well results industry partners and compe2tors have published similar performance:
n QEP: 1,606 boe/d (SRC, 12.5% WI, via Hilcorp acquisi2on)
q Muddy Sand Opportunity:
n Recent results of ver2cal Muddy Sand test (430 BOPD, 800 mcf/d) has unlocked a large inventory of horizontal loca2ons
n Offset ver2cal wells in the area have EURs of 800+ MBO
q Niobrara:
n Industry ac2vity and recent well results has further defined the economic feasibility of this play underlying most of our acreage
n CHK reported 2,460 boe/d from a recent Niobrara well
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Chesapeake
Anadarko
Devon
QEP SM Energy
BBR Helis
Samson Resources!
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Development Well Type Curve: $6.4 MM, 400 MBO, 159 MMCF > 40% IRR; Development Cost of $18.76 / BOE
q Samson expects to run 2 operated rigs through 2012
n Shannon development in North Tree
n Sussex wells between Spearhead Ranch and Hornbuckle
n Sussex development within ScoV field
n Horizontal Muddy test located in Hornbuckle field
North Tree (Shannon)
2012 Planned Wells
Hornbuckle
Scom
Spearhead Ranch
Scom Field HZ Sussex Will offset 30-‐153 MBO Ver=cals
Offset to TCR State 34-‐36 EUR: 475 MBOE
Offset to ver=cal Shannon 50-‐90 MBO EUR wells
HZ Muddy test
Sussex step out – Fed Unit obliga=on well
Non-‐Op Sussex well
Powder River Basin
Samson Resources!
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Ft. Union
Development Horizontal Well Type Curve: $11.0 MM, 8.4 BCF, 217 MBO, 891 MNGL > 150% IRR; Development Cost of $5.48 / BOE
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q Samson expects to run 2 operated rigs through 2012
q 15+ year inventory, with 190 net iden2fied drilling loca2ons
q 208 MMboe net risked resource poten2al
Barricade 14-‐1 H 4000’ lateral EUR 6.1 BCF, 769 Mbbl NGL,
121 Mbbl Condensate
Samson Resources!
q Samson’s Mid-‐Con2nent Division includes 4,722 producing wells which produce from over 25 established produc2ve intervals across the Anadarko, Arkoma and Ardmore basins
q Net Acreage: ~700,000 q Net Risked Resource Poten=al: 354 MMboe
q Net Iden=fied Drilling Loca=ons: 675 q 6/30/2012 Produc=on: 33 Mboe/d q The Mid-‐Con2nent has a number of very aVrac2ve oil opportuni2es
including: n Hogshooter: Samson has par2cipated in many wells with partners
and has drilled and completed two Hogshooter wells. The first two wells reached sustained average rate 3,100 Boe/d and delivered IRR’s in excess of 70%. Currently there are two operated rigs running in this exci2ng new play
n Tonkawa: Samson has completed several Tonkawa wells adjacent to industry ac2vity to establish a program to deliver project IRR’s over 20%
n Mississippi Lime: Completed first Mississippi Lime well which met expecta2ons. Samson will further delineate this play and expects future ac2vity in this play along with other oil plays across the Mid-‐ Con2nent Division
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Overview of Mid-‐Con=nent Division Overview Asset Map
Samson Resources!
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Ivestor 57-‐6H IP 5.0 mmcfd, 1800 bopd
Davis 64 SL 5H IP 7.0 mmcfd, 2900 bopd
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Granite Wash – Hogshooter and Comage Grove Wash Oil Zones q Samson expects to run 2 operated rigs through 2012
q Iden2fying and capturing new loca2ons in this exci2ng new play
Development Well Type Curve: $6.8 MM, 271 MBO, 472 MMCF, 47 MBNGL > 70% IRR; Development Cost of $21.43 / BOE
Samson Rigs
Ac=ve Rigs
CHK Horn Thurman 406H IP 4.6 mmcfd, 5400 bopd CHK Reed 41-‐9H IP 1.4 mmcfd, 1400 bopd
Samson Resources!
Bill #3-‐9H Wai2ng on Comple2on
Ben Stout 4-‐4H Wai2ng on comple2on
Bill 1-‐9H 380 bopd & 440
mcfd IP30 EUR 236 MBO, 178 MMCF Half length lateral
Tonkawa Horizontal Play Map
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Horizontal Oil Plays q Samson expects to run 1 operated rig in 2012, across several Horizontal oil plays
q Samson has iden2fied a number of oil plays across the Mid-‐Con2nent division. The Tonkawa is one example of the Company’s approach on HBP’d assets
Tonkawa Development Well Type Curve: $6.0 MM, 224 MBO, 349 MMCF > 20% IRR; Development Cost of $26.58 / BOE
Ommen 1-‐15H 1st mo avg 106 bopd
EUR 163 MBO
Henry 1-‐10H 1st mo avg 329 bopd
EUR 200 MBO Half length lateral Blackhawk 1-‐18H
1st mo avg 617 bopd EUR 295 MBO
Ben Stout 3-‐4H on flowback
Ben Stout 2-‐9H on flowback
Samson Resources!Overview of East Texas Division
q Samson's East Texas Division includes gas-‐rich producing proper2es in East Texas and North Louisiana and is expanding its footprint with oil and liquid rich opportuni2es
n Net Acreage: ~450,000
n Net Risked Resource Poten=al: 509 MMboe
n 6/30/2012 Produc=on: 35 Mboe/d
q Comon Valley: The CoVon Valley is a liquids-‐rich horizontal play with a significant drilling inventory and great well results to support con2nued development
q Woodbine: Samson has ~52,000 net acres. Acreage is prospec2ve for oil targets including Woodbine Sand & Shale, Buda, Georgetown, Glen Rose
q Haynesville/Bossier: No ac2vity currently, 75,000 net acres high graded and HBP
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Overview Asset Map
Samson Resources!
3 Well Pad Biggs #3H – first ‘B’ Sand HZ
Frost Lumber #2H Frost Lumber #3H
#5H #6H
#2H #3H
#3H
16 Development Well Type Curve: $6.8 MM, 5.6 BCF, 60 MBO, 295 MBNGL > 25% IRR; Development Cost of $6.60 / BOE
Currently Drilling Crnko-‐Biggs 4H
East Texas East Texas includes Comon Valley opera=ons
q Samson expects to run 1 operated rig in 2012
q 115 net risked drilling loca2ons
q 79 MMboe net risked resource poten2al
Samson Resources!
EncanaGastar
Rippy
PetroMaxChesapeake
Devon
Apache
Range
Maness “Eagle Ford”Net Isopach
With Competitor ActivityPonderosaWI 75%
SparkyWI 100%
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Woodbine
Development Well Type Curve $8.2 MM, 298 MBO, 410 MBNGL, 1.6 BCF > 35% IRR; Development Cost of $10.52 / BOE
q Samson expects to drill 1 gross operated well and test in 2012 q Encouraged by first two Woodbine Sand tests at Ponderosa acreage
block q Drilling third test well, applying learnings to date q Significant ac2vity by other operators nearby, tes2ng Maness Shale
and Buda/Georgetown Lime
Stacked Oil Targets: Woodbine Sand; Maness Shale; Buda/Georgetown Lime; ~ 52,000 net acres
Samson Resources!
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Cline Shale Ac=vity – Sterling Co., Texas q ~ 14,200 net acres q Range & Devon currently drilling nearby q Monitor industry ac2vity and test late 2013
Development Well Type Curve: $7.5 MM, 380 MBO, 1.3 BCF ~ 20% IRR; Development Cost of $15.71 / BOE
Apache 3 Cline Shale
Horizontal Wells
Laredo 22 Cline Shale
Horizontal Wells
Range Edmondson 19 #1H Horizontal Cline Shale
3700’ Lateral Spud 2/10/11
Cline Shale Net Isopach C.I. = 10’ (>20 Ohms, >10%Phi Density & >105 GR API ( Just resis8vity Pay around Horwood Area)
Laredo 4 Cline Shale
Horizontal Wells
Range Hilebrand 16 #1H Horizontal Cline Shale
4500’ Lateral Spud 11/08/11
Devon Virginia City #1H Horizontal Cline Shale
8000’ Lateral Permimed 4/12/12
Devon Stroman #5H Horizontal Cline Shale
8000’ Lateral Spud 3/14/12
Firewheel Prospect
Range Conger 19 #1H
Horizontal Cline Shale
4500’ Lateral Permimed 4/10/12
Samson’s Horwood Ranch
Samson Resources!Wolfcamp Shale – Crockem/Reagan Co., Texas
Development Well Type Curve: $5.7 MM, 270 MBO, 970 MMCF > 30% IRR; Development Cost of $16.51 / BOE
q ~6,200 net acres q JV with EOG q EOG tes2ng first three horizontal wells within JV q Samson carried in first three wells
Devon Univ. 43-‐15 #1H 6th Day of Clean Up Rates of
207 BOPD + 382 BLW + 0.233 MMCFGPD
El Paso Univ. 43-‐19 #1 24 Hour Test 575 BOPD
+ 0.50 MMCFGPD
EOG Univ. 40-‐14 #1 Peak Rates of 935 BOPD
+ 0.83 MMCFGPD
EOG Linthicum M #1 Peak Rates of 809 BOPD
+ 0.89 MMCFGPD
Devon Univ. 52-‐10 #1H Rpt. Rates of 425 BOPD + 0.503 MMCFGPD
Highmount Univ. 55 10-‐2 Tested 425 BOPD + 0.233
MMCFGPD
EOG Univ. 38 #0601H Peak Rates of 862 BOPD
+ 0.714 MMCFGPD
Approach Univ. 45 C #803H Rpt. Rates of 931 BOPD + 0.615 MMCFGPD
El Paso Univ. 43-‐18 #1 Rpt. Rates of 408 BOPD + 0.609 MMCFGPD
Samson’s Acreage
EOG Acreage
EOG/Samson JV Outline
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