Save Article Instructions


By OGJ editors
HOUSTON, June 25
– An undisclosed large US independent producer has agreed to buy 24,166 acres of the 40,240 acres held by Samson Oil & Gas Ltd., Perth, in Goshen County, Wyo., in the Niobrara unconventional oil play.

Consideration is $61-79 million pretax. Closing is set for July 26.

Samson is selling its entire working interest in the southern part of its holdings and will retain an average 4.8% royalty interest. The company plans to develop the retained northern acreage without further material dilution of its interest but said future development could alter those plans.

Samson is forming an exploratory unit to protect some leases that might otherwise expire later in 2010. The process is largely complete, but if the unit is not in place by the closing date of the sale, then the purchase price may be reduced.

Also, 2,670 acres to be sold are outside the unit area and will expire this year unless drilling commences. Samson is pursuing drilling permits that would allow 1,920 of those acres to be protected.

To access this Article, go to: