Samson Oil & Gas Limited (ASX: SSN; NYSE MKT: SSN):
North Stockyard Sale
As previously advised, Samson has executed a purchase and sale agreement
with respect to its interest in the North Stockyard Field and received a
$1 million deposit as part of the $15 million consideration. The buyer
has indicated that it now plans to close on October 20th.
Accordingly Samson has accepted an extension request, along with a
$50,000 fee to accommodate this extension.
Mutual of Omaha Bank has accepted our waiver request to allow the
current debt facility to be reduced by $11.5 million to $19 million
prior to October 31st. Mutual of Omaha Bank has also agreed
that a portion of the sale proceeds (in amount to be agreed upon) may be
included in the amount needed to complete the $5 million equity required
to be raised by Samson. Mutual of Omaha Bank has also agreed that this
may be accomplished prior to November 15th, 2016. The equity
raised in April this year would be included in the $5 million required
to be raised.
Samson is publishing its June 30th accounts tomorrow and, as
of that date, the Company will report that it is in compliance with all
other covenants associated with its debt facility.
As previously reported, Samson’s June 30th reserves report
showed significant growth in its Proved Reserves with an estimated $126
million of net present value (at a 10% discount rate). Included in this
Proved reserve estimate is a Proved Developed Producing reserve valued
at $62 million (at a 10% discount rate) compared to the outstanding draw
from the Bank secured by the facility of only $30.5 million.
SAMSON OIL & GAS LIMITED
Samson’s Ordinary Shares are traded on the Australian Securities
Exchange under the symbol "SSN". Samson's American Depository Shares
(ADSs) are traded on the New York Stock Exchange MKT under the symbol
"SSN". Each ADS represents 200 fully paid Ordinary Shares of Samson.
Samson has a total of 3,215 million ordinary shares issued and
outstanding (including 230 million options exercisable at AUD 3.8
cents), which would be the equivalent of 16.075 million ADSs.
Accordingly, based on the NYSE MKT closing price of US$0.72 per ADS on
September 28th, 2016, the Company has a current market
capitalization of approximately US$11.5 million (the options have been
valued at an exchange rate of 0.72). Correspondingly, based on the ASX
closing price of A$0.005 for ordinary shares and a closing price of
A$0.001 for the 2017 options, on September 28th, 2016, the
Company has a current market capitalization of approximately A$16.1
Statements made in this press release that are not historical facts may
be forward-looking statements, including but not limited to statements
using words like “may”, “believe”, “expect”, “anticipate”, “should” or
“will.” Actual results may differ materially from those projected in any
forward-looking statement. There are a number of important factors that
could cause actual results to differ materially from those anticipated
or estimated by any forward-looking information, including uncertainties
inherent in estimating the methods, timing and results of exploration
activities. A description of the risks and uncertainties that are
generally attendant to Samson and its industry, as well as other factors
that could affect Samson’s financial results, are included in the
prospectus and prospectus supplement for its recent Rights Offering as
well as the Company's report to the U.S. Securities and Exchange
Commission on Form 10-K, which are available at www.sec.gov/edgar/searchedgar/webusers.htm.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160928006545/en/
Copyright Business Wire 2016
Source: Business Wire
(September 28, 2016 - 9:00 PM EDT)
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