Published: January 8, 2016 |

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Samson Oil and Gas has moved to acquire a parcel of oil and gas leases, producing oil and gas wells, currently shut-in wells and associated facilities in the U.S.

The company has entered into a contract to acquire the assets for a cash price of $16.5 million.

The properties to be acquired produce about 720 barrels of oil per day from 41 net producing wells.

Netherland Sewell & Associates have estimated that the properties contain proved reserves of 8.5 million barrels with a net present value of $84.9 million, as of October 1 2015, the effective date of the transaction.

The 51,305 net acres of petroleum leases being acquired include the right to exploit hydrocarbons down to the top of the Bakken Formation.

For a portion of the leases, Samson is also acquiring the rights to the deeper geologic section below the Bakken pool.

The properties have been in production for several years and represent production from various geologic horizons above the Bakken Formation.

Samson’s immediate focus will be on 17 wells expected to be bought on line with minimal capital expenditure.

The transaction is conditional on Samson being able to use its existing $50 million debt facility which has a current borrowing base of $19 million.

Closing is expected February 1 subject to the completion of due diligence and financing approval.

Source: (January 6, 2016) Proactive Investors

About Samson Oil and Gas
Samson Oil & Gas holds extensive development and exploration acreage in the USA.

To stop by Samson’s website, CLICK HERE

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