Samson Oil & Gas Announces Sale of North Stockyard and Amendment of Debt Facility Agreement
Samson Oil & Gas Limited (ASX: SSN; NYSE MKT: SSN):
North Stockyard Sale
Samson has executed a Purchase and Sale Agreement with Angelus Private
Equity Group (“Angelus”) to sell its interest in the North Stockyard
field in North Dakota for $15 million cash. The closing is scheduled for
August 31st, 2016 and Angelus has tendered a $1 million
Samson’s debt facility required a $10 million reduction on June 30th
but, in light of the pending sale, that deadline has been extended by
the lender to August 31, 2016 to accommodate the closing. The amount
owed under the facility will be reduced by $11.5 million from the
proceeds of the sale.
The term of the debt facility has been extended to October 2017 with all
other elements of the debt facility remaining unchanged, including an
interest rate of 6% plus LIBOR (currently at approximately 0.64%). This
interest rate is subject to adjustment in the future based on Samson’s
debt to EBITDA ratio, which is reviewed on a quarterly basis.
Samson’s borrowing base, following the sale and pay down, will be $19
million (the outstanding amount). Samson’s internally generated proved
developed producing reserves value (NPV10) are estimated at
$30.9 million, as disclosed on June 28th, 2016. Another
borrowing base redetermination will be performed based on Samson’s June
30th, 2016 reserves after that reserves analysis has been
completed by Samson’s independent reserve engineers.
The sale of North Stockyard will achieve a number of goals including:
1) A reduction of our debt level.
2) Providing cash liquidity that
can be invested in the Foreman Butte project which, as illustrated by
our recent reserve report has considerable growth potential, with more
than $50 million of proved developed non-producing and proved
3) Maintaining compliance with our debt
4) Maintaining the excellent working relationship that
we have with our lender.
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$0.71 per ADS on
June 30th, 2016, the Company has a current market
capitalization of approximately US$11.4 million (the options have been
valued at an exchange rate of 0.7426). Correspondingly, based on the ASX
closing price of A$0.004 for ordinary shares and a closing price of
A$0.001 for the 2017 options, on June 30th, 2016, the Company
has a current market capitalization of approximately A$12.8 million.
SAMSON OIL & GAS LIMITED
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 Samson’s
reports to the U.S. Securities and Exchange Commission, which are
available at www.sec.gov/edgar/searchedgar/webusers.htm.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160630006437/en/
Copyright Business Wire 2016
Source: Business Wire
(June 30, 2016 - 9:00 PM EDT)
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