Over the past two days, nitrogen was injected into the well at an equivalent density of 5.3 pounds per gallon. But Samson said no subsequent hydrocarbon influx was observed.

Samson managing director Terry Barr said the Greens Canyon 27-3 sidetrack was drilled in an efficient manner, although it failed to produce hydrocarbons.

“The hole stability was a problem that could only be combated with maintaining an overbalanced drilling fluid, which was not the ideal situation when evaluating the productivity of a fracture system,” Barr said.

“The data collected from this operation will now be analysed. However, it would be clear that the next appraisal of this unit will be a conventional vertical well bore, fracture stimulated.”

Barr said using this hydraulic fracturing technique had been used successfully in the southern part of the Green River Basin.

“Additionally, there was a well drilled in 1974 that has produced 80 barrels of oil per day and 1 million cubic feet of gas per day without stimulation from this interval in our Flaming Gorge project area (Lone Star 1X),” he said.

“Accordingly, the focus of Samson’s future Baxter Shale evaluation program will now move to this area.”

A competitor company that has successfully used this fracturing technique has indicated a desire to conduct a joint operation with Samson in this project area. Barr said the two companies would now discuss developing an appraisal well for the Flaming Gorge project area. He did not name the competitor company.

Meanwhile, in the Hawks Springs project area of the Denver-Julesberg Basin, Samson says it has sourced, and is in the process of, contracting a drilling rig to spud the London Flats-1 well in mid-April.

With a planned total depth of 7400 feet, the well is designed to evaluate both the

Niobrara and the Codell Formations.

London Flats-1 would then be plugged back to a depth of 6300 feet and a directional well bore constructed to set 5 ½-inch casing horizontally in the Niobrara.

The conventional rig would then be demobilised and a coil-tubing unit used to drill a 2500 feet horizontal section within the objective section.

Drilling this well is subject to joint venture approval between Samson and Mountain Energy, which are 50:50 holders of the project area.