Samson Resources II to sell East Texas and North Louisiana assets for $525m
Samson Resources II is set to sell its assets in East Texas and North Louisiana to an affiliate of Rockcliff Energy II for $525m following an approval from its board of directors.
The firm announced the sale of the assets in May this year.
The transaction is expected to close on 29 September this year and comprises around 210,000 net acres across East Texas and North Louisiana, producing around 90 million cubic feet equivalent a day.
Rockcliff Energy II president and CEO Alan Smith said: "Furthermore, this land position, which is practically impossible to replicate, is strategically positioned in a very favourable natural gas market.
“These assets provide a good balance of production and drilling inventory in multiple horizons, and we are excited to apply our deep unconventional experience and capabilities to create value for our investors over the years to come.”
The sale proceeds from the transaction will be used by Samson to settle all the outstanding debt, in addition to funding its capital needs next year.
Once the transaction is complete, the company will focus on developing its oil and gas assets located in the Powder River where it owns around 146,000 net acres and the Green River Basins of Wyoming.
The assets and subsidiaries of Samson Resources Corporation emerged from Chapter 11 bankruptcy protection in March and were acquired by Samson Resources II.
As of March, Samson Resources II closed on about $14m of non-core asset and equipment sales.