Samson Oil & Gas USA Inc. remains in discussions with Eagle Energy Partners I LLC, but also is seeking an alternate buyer for substantially all its Foreman Butte project after a $40-million agreement with Eagle Energy expired on Oct. 15.
Samson holds an 87% average operated working interest in the project, which is in McKenzie and Williams counties, ND; Richland, Roosevelt, and Sheridan counties, Mont.; and the Mississippian Madison formation in the Williston basin.
The recent appreciation in the price of oil has enhanced the reserve value of the asset and the company is confident interest will remain high, it said in a statement.
The agreement with Eagle Energy, signed in late June, provided for a $1 million, fully refundable deposit if Eagle found title or environmental defects above a prescribed threshold, and partially refundable if Eagle hadn’t secured sufficient debt financing to complete the transaction.
In late July, Samson reported an increase in net production from the Foreman Butte project—to 46,348 bbl of oil for the June quarter versus the March quarter total of 34,450 bbl—due to the workover program following the acquisition and refurbishment of its workover rig.
In February, financing killed a deal to sell the assets to Firehawk Oil & Gas LLC, Denver (OGJ Online, Feb. 2, 2018).