Following the closing of this transaction Samson is expected to reduce its debt facility to $19 million.
Samson’s motivation to complete this sale was to be able to concentrate its capital and human resources on the recently acquired Foreman Butte project. This project has been operated by Samson for approximately three months, resulting in a substantial increase in production rate and Proved Developed Producing (PDP) reserves on account of an extensive round of workovers conducted since it became Operator.
Samson is due to publish an updated reserves estimate during September once the audit of its annual financial statements is complete.
The Foreman Butte project is currently testing two production enhancement techniques, a fresh water clean out of the Evans 1-10H well and an acid stimulation of the Maris 1-16H well. A jet pump has been installed on the Evans well and it has responded with an increased fluid rate. A similar installation is underway on the Maris well. These pumps will increase the fluid offtake and should enhance Samson’s understanding of the viability of each technique.