Samson Oil & Gas Refinancing
October 01 2018 - 12:16AM
Business Wire
As previously advised, Samson Oil and Gas USA, Inc, a
wholly-owned subsidiary of Samson Oil and Gas Limited (ASX:SSN and
OTCQB:SSNYY), has entered into a Purchase and Sale Agreement (PSA)
with Eagle Energy Partners, I, LLC (Eagle or Buyer) for the sale of
Samson’s Foreman Butte Project located in the Williston Basin in
North Dakota and Montana for cash consideration of US$40 million
(subject to normal post completion adjustments).
The transaction includes Samson retaining a non-operated 15%
working interest in the Home Run Field which contains the bulk of
the identified upside of the project.
At the request of the Buyer the PSA has been amended and now
provides for a Closing date of October 15th. As condition of Samson
extending the Closing date the Buyer has released the escrowed
deposit.
The Buyer did not determine any title and environmental
defects.
A shareholder meeting to seek approval for the transaction
received a positive outcome and accordingly the transaction has
been able to proceed.
The transaction will allow Samson to retire all of its debt, and
meet all of its other liabilities and should leave it with a cash
balance of approximately US$7 million. The transaction has been
designed, through the retention of a 15% working interest in the
Home Run Field, to allow Samson shareholders to participate in
development of the Proved Undeveloped reserves within the Ratcliffe
Formation associated with the Home Run Field along with the
Probable reserve within the Nesson Formation in the same field.
Samson has identified 26 well locations with the Ratcliffe
Formation which are planned to be drilled out of the existing well
bores. The Nesson Formation opportunity includes 10 vertical wells
in a well-defined structure which was proven to be productive from
the Nesson Formation when penetrated in the Banks well, but for
mechanical reasons has remained undrained.
Samson has been advised by Eagle that it intends to develop
these opportunities and intends to drill the initial wells in the
balance of 2018 and another 9 wells in 2019. Samson for its part
expects to have sufficient funding to participate in this drilling
program and will be able, if it determines to, to propose and drill
these wells for its own account under the provisions of a Joint
Operating Agreement to be entered into with Eagle at
completion.
The Samson Board met recently to consider what strategic
direction it would take after this transaction completes and the
conclusion reached in general terms was to maintain Samson as a US
based oil and gas entity and it would examine other US basin plays
which will be assessed for potential entry, in addition to the
non-operated Home Run Field equity.
Statements made in this press release that are not historical
facts may be forward looking statements, including but not limited
to statements using words like “may”, “believe”, “expect”,
“anticipate”, “should” or “will.” Actual results may differ
materially from those projected in any forward-looking statement.
There are a number of important factors that could cause actual
results to differ materially from those anticipated or estimated by
any forward looking information, including the risks that the
anticipated sales transaction will not close or that the purchase
price will be materially reduced on account of potential
liabilities uncovered during due diligence as well as uncertainties
inherent in estimating the methods, timing and results of
exploration activities. A description of the risks and
uncertainties that are generally attendant to Samson and its
industry, as well as other factors that could affect Samson’s
financial results, are included in the prospectus and prospectus
supplement for its recent Rights Offering as well as the Company's
report to the U.S. Securities and Exchange Commission on Form 10-K,
which are available at
www.sec.gov/edgar/searchedgar/webusers.htm.
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version on businesswire.com: https://www.businesswire.com/news/home/20180930005047/en/
Samson Oil and Gas LimitedTerry Barr, CEO303 296 3994 (US
office)
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