These assets in the Fort Peck Indian Reservation in Roosevelt County are being acquired in three tranches.
Tranche 1 is a 20,000-acre block to be acquired immediately upon closing that includes a two-well drilling obligation.
Tranche 2 is an option to acquire an additional 20,000 acres upon the completion of the initial two wells in tranche 1.
Tranche 3 is a 50,000-acre area covered by an area of mutual interest where Samson and FPEC have agreed to jointly acquire additional leases.
The ultimate ownership interest of Samson in the three tranches will vary, depending on FPEC’s future decisions whether to back in to an interest in the acquired acreage.
Samson will hold at least a 66.66% working interest in all of the acquired acreage.
Drilling of the first well is expected to begin in September 2011, and drilling of the second well will start immediately following the completion of the first well.
Both wells are planned to be drilled as 4,500ft laterals in the middle Bakken formation and then fracture stimulated using a multi stage, external casing packer completion technique.
