Samson to Sell Stake in Goshen County Project

Samson Oil and Gas has signed an agreement with an undisclosed US partner to sell 24,166 acres of its 40,240-acre holdings in Goshen County in Wyoming, US, for up to $79m.

The Goshen County holdings feature the Niobrara Formation, an oil play that could be developed using horizontal drilling techniques.

The firm has been seeking a partner for the Goshen County Project to fund the development, and were required to sell a part of the project for the purpose.

The transaction will also allow Samson to achieve several objectives to its existing debt and finance the development of its Williston Basin acreage with significant oil flows and the under-development project onshore Gulf Coast Basin.

Under the agreement, Samson will hand over its working interest in the southern portion of the holdings in Goshen county to the partner but retain about 4.8% royalty interest in the leases sold.

Samson will also retain remaining interests in the northern part of the existing project amounting to 16,300 net acres.

Samson plans to drill and develop its part of the acreage in the near future.