Samson Oil & Gas sells State GC assets in New Mexico

Samson Oil & Gas has completed the previously announced sale of its State GC assets in New Mexico to an undisclosed US energy company for $1.2m.

The proceeds from the transaction were used to pay down Samson’s current facility with Mutual of Omaha Bank.

The paid down funds can be redrawn, subject to Samson’s compliance with the terms of the facility.

Following the sale of the assets, the company’s borrowing base stands at $20m, in addition to an outstanding term loan of $4m.

The profit accruable to the company from the sale is expected to be around $0.6m.

Samson executed this transaction after a purchase and sale agreement in relation to its State GC assets was signed earlier this month.

The company has a 27% working interest in the State GC oil field located in Lea County.

Spread over 600 acres, the oil field has two wells producing 50 barrels of oil per day (bopd). 

Meanwhile, the company noted that it is developing its production capacity in the Foreman Butte project.

The operated wells in the project produced 1,294bopd on 23 May.

This gross operated rate is equivalent to 1,000bopd net to Samson, including its non-operated production in the same asset, comparable with the March quarter average oil rate of 720bopd. 

Samson Oil & Gas is an US / Australian-based oil and gas company focused on oil production in the Niobrara and Bakken formations in the US.

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Image: Following the sale of the assets, Samson’s borrowing base stands at $20m. Photo: courtesy of Samson Oil and Gas.