Samson Resources II LLC, Tulsa, has agreed to sell a portion of its position in Converse County, Wyo., to an undisclosed buyer in a cash and acreage deal.
The agreement calls for Samson to sell 7,000 net acres, interests in 17 wells, and overriding royalty interests in assets it deems noncore to its portfolio. In return, Samson will receive $4.4 million in cash and 15,000 net acres. The acreage 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, Wyo.
The company is divesting noncore assets and increasing focus on core assets in the Powder River and Green River basins of Wyoming, said Joseph Mills, Samson president and chief executive officer. Proceeds will be used to partially fund the company’s 2018 drilling program, he said.
After closing, expected before May 31, Samson will own rights to more than 152,000 net acres in the Powder River basin.