But Samson managing director Terry Barr said the significance of these shows would not be known until electric logs had been run and evaluated.

“The extensive nature of the gas shows recorded on the gas log makes the interpretation of the significance of the show difficult to interpret,” Barr said.

“An electric logging program will be used to assist in the go forward program, however the initial plan of drilling the Niobrara with a 2500 feet [762m] horizontal section would appear likely.”

Based on previous discoveries, the Niobrara Formation is estimated to contain 20 million recoverable barrels of oil or 10 million bbl net to Samson.

Meanwhile, the Codell Formation, which is also productive elsewhere in the Denver-Julesberg Basin, has the potential to recover between 95 and 140 million bbl of oil equivalent, according to Samson.