The sale will be in exchange for cash consideration of $44.4 million and the receipt by Samson of 15,000 net acres (all subject to customary adjustments).
The acreage to be received by Samson under the transaction will include all depths below the Fort Union formation, is currently undedicated and will bolt-on to Samson’s core acreage position in Johnson County, WY.
In exchange, Samson has agreed to sell approximately 7,000 net acres, Samson’s interests in 17 wells and overriding royalty interests. Samson considers the assets non-core to its portfolio.
The effective date of the transaction will be April 1, 2018 and closing is expected to occur prior to May 31, 2018. After closing, Samson will own rights to more than 152,000 net acres in the Powder River Basin.
Samson president and CEO Joseph Mills said: “This sale represents another important step in Samson’s portfolio management strategy of divesting non-core assets and increasing focus on our core assets in the Powder River and Green River Basins of Wyoming.
“The proceeds of this sale will be used to partially fund our 2018 drilling program and allow us to further capitalize on our robust drilling opportunities.”
Mills further stated: “Samson continues to execute on its plan to deliver shareholder value with a lower risk growth strategy while remaining focused on balance sheet strength.”
Samson is a privately held onshore exploration and production company headquartered in Tulsa, Oklahoma.
Source: Company Press Release.
