Samson Oil & Gas Limited (ASX: SSN; NYSE MKT: SSN):
Foreman Butte Transaction
Samson Oil and Gas USA, Inc. (a wholly owned subsidiary of Samson Oil
and Gas Limited) has closed the transaction to acquire the Foreman Butte
acquisition.
The acquisition includes oil and gas leases, producing oil and gas
wells, currently shut-in wells and associated facilities in North Dakota
and Montana for consideration of $16.0 million.
Samson’s existing primary lender has funded $11.5 million of the
acquisition price as part of an expanded debt facility. This facility
will initially bear an interest rate equal to 6% plus the monthly LIBOR
interest rate. The seller has accepted a $4 million promissory note
secured by a second lien with a 12 month term and a 10% interest rate.
This acquisition includes the potential for further growth opportunities
for Samson through the continued production of the currently producing
wells, the workover and stimulation targets of the PDNP wells and, as
the oil price continues to improve, the development of numerous PUD
locations. The growth potential of this asset is evidenced by the
previously disclosed reserve information:
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Oil (MBBL)
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Gas (MMCF)
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NPV10 (M$)
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Proved Developed Producing
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2,147.6
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1,049.2
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$22,754.7
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Proved Developed Non-producing
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1,188.9
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2,240.7
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$11,284.2
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Proved Undeveloped
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3,343.7
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2,340.6
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$17,609.2
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Total Proved
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6,680.3
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5,630.5
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$51,648.1
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Oil pricing used in this estimate represents NYMEX WTI prices as at
February 1st, adjusted for quality, transportation fees and market
differentials. Gas pricing is based on NYMEX Henry Hub prices as at
February 1st, adjusted for energy content, transportation fees and
market differentials. Prices, before adjustments, are as follows:
Period Ending
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Oil Price ($/Barrel)
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Gas Price ($/MMBTU)
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February 2016
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39.63
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2.300
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December 2016
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36.95
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2.382
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December 2017
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42.36
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2.725
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December 2018
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44.93
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2.837
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December 2019
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46.74
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2.944
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Thereafter
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48.07
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3.065
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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 2,837 million ordinary shares issued and
outstanding (including 230 million options exercisable at AUD 3.8
cents), which would be the equivalent of 14.185 million ADSs.
Accordingly, based on the NYSE MKT closing price of US$0.85 per ADS on
April 1st, 2016, the Company has a current market
capitalization of approximately US$12.2 million (the options have been
valued at an exchange rate of 0.7651). 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 April 1st, 2016, the Company
has a current market capitalization of approximately A$14.4 million.
SAMSON OIL & GAS LIMITED
TERRY BARR
Managing
Director
Competent Person’s Statement
The reserves quoted in this announcement were estimated by Netherland
Sewell & Associates, an independent petroleum reserves engineering
consulting firm, based on the definitions and disclosures guidelines
contained in the Society of Petroleum Engineers, World Petroleum
Council, American Association of Petroleum Geologists and Society of
Petroleum Evaluation Engineers Petroleum Resources Management Systems.
Information contained in this announcement relating to hydrocarbon
reserves was compiled by the Managing Director of Samson Oil & Gas
Limited, T M Barr, a geologist who holds an Associateship in Applied
Geology and is a fellow of the Australian Institute of Mining and
Metallurgy, who has 35 years’ relevant experience in the oil and gas
industry.
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.
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