Crude Oil ( ) Brent Crude ( ) Natural Gas ( ) S&P 500 ( ) PHLX Oil ( )
Current SSN Stock Info

Samson Oil & Gas: debt reduction, higher borrowing base

Following the closing of the company’s North Stockyard asset sale, Samson Oil & Gas Limited’s (ticker: SSN) outstanding debt has been reduced to $19 million and Mutual of Omaha Bank has increased the company’s borrowing base to $20 million.

Samson expects the Bank to further increase its borrowing base in the first quarter of 2017 as part of a new syndicated loan involving another bank. The scope of the expanded debt facility will depend on the value of Samson’s Proved Reserves as at November 30th which in turn will depend on commodity pricing and well performance, the company said in a statement.

The closing of the North Stockyard sale and paydown of the debt was a condition of the loan facility amendment that financed the acquisition of the Forman Butte project. That amendment also required Samson to raise a total of $5 million in equity. The Bank has now agreed that this condition has been met.

Samson said it does not intend to raise additional equity capital at this time.


According to the highlights from a recent EnerCom Catalyst Report on Samson Oil & Gas, Limited:

  • The PV-10 value of SSN’s total pro forma proved reserves value of $110.7 million, net of debt and accounting for cash, implies an NAV per share for Samson at $5.52;
  • On a per share basis using PDP reserves only, we estimate Samson’s NAV at $1.57, as compared to the closing value of the Company’s shares of $0.83 on September 12, 2016;
  • Samson grew production at Foreman Butte from 300 barrels of oil per day (BOEDP) to now producing about 1,300 BOPD, an increase of over 333%, in less than five months with only $800,000 in capital;
  • Samson has identified 17 PUD drilling locations in the porosity fairway of the Foreman Butte Field, and estimates that initial rates of production from the wells will range between 260 and 460 BOPD.

Having recently closed its North Stockyard asset sale in the Williston, and with its newly increased borrowing base and reduced debt level, Samson looks to be gaining position to accelerate production growth in its key asset areas.

Download Samson Oil & Gas Catalyst Report

Samson Oil & Gas’s Borrowing Base Gets a Bump Up

Source: Samson Oil & Gas Limited

 


Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.