The Wyoming gas field shutdown is expected to cost Samson about $US30,000 in lost revenue, but will be compensated through the two fixed forward swaps that it has in place for this gas, the Perth-based company told the market yesterday.

These fixed forward swaps are set at $6.03 and $6.15 per million British thermal units respectively, and will yield $250,000 this month.

Samson said the field was shut down due to the low gas price set for October, which was just $US1.11 per MMbtu.

While the field is offline, Samson said the operator would do scheduled maintenance of the field compression system.

The Jonah Field remains in production for October, and gas will be sold from that field priced at US$1.22 per MMbtu.

As a result of the low prices, Samson has downwardly revised by 18% its anticipated revenue for both fields in October to $US285,000.

Samson said the weak gas prices being experienced in the Rockies were “considerably lower” compared to the rest of the US.

“The weaker prices in the region are due to the limited transmission facilities for delivery of Rocky Mountain gas to the more populous gas-consuming regions of the US,” Samson said.

“This problem is expected to be substantially rectified by the completion of the construction of the Rocky Mountain Express (REX) gas pipeline.”

REX is being built progressively from the Rockies region to the eastern energy-hungry regions of the country.

Samson holds a 21% stake in the Jonah Field and a 16.65% stake in the Lookout Wash field.

Both fields are in the Green River region where Samson already has exploration and production assets.