State GC Oil Field (Samson 27% Working Interest)
The State GC oil field, located in Lea County, New Mexico, was discovered in 1980 and covers approximately 600 acres. The field currently has two wells producing from the Lower Leonard (Wolfcamp) sands. The State GC #1 well has produced 630,000 barrels (bbls) of oil and 0.9 BCF of gas to date. The State GC #2 well was drilled in 2008 in a similar amplitude as the State GC #1. These two wells combined currently produce 50 BOPD. This rate could increase after a fracture stimulation is conducted on the Bone Spring zones in the State GC #2 well. A success in the Bone Spring reservoirs could lead to additional development on this acreage. Samson's acreage lies within the Horizontal Bone Spring/Avalon Shale Trend which continues to grow in the direction of Samson's acreage position. As more Bone Spring data points are gathered, the better we will be able to understand how the play works and determine the viability of it under Samson's leases.