Samson Resources II, LLC has released its 2018 total capital budget with a range of $105 to $115 million. The capital program aims to increase production volumes by about 20%, compared to 2017 exit production rates. The company will spend $85 to $95 million toward its drilling and completion program and $20 million toward its leasing, seismic, recompletion and workover program. Samson plans to drill approximately 25 to 30 gross wells and 15 to 20 net wells in the Powder River and the Green River Basin(s) in Wyoming.

The capital program will be funded from operating cash flows and cash on-hand, the company said. Samson has approximately $200 million of liquidity (pro-forma for the Wamsutter divestiture) with approximately $95 million of cash available for use and a $107 million undrawn RBL revolver for future investment opportunities.

Samson Resources Plans $105 Million 2018 Capital Program

Samson Asset Portfolio Overview, March 2017

The company expects to divest an additional $40 to $60 million of non-core assets in 2018 (which includes the previously announced sale of the Wamsutter assets, that will close in January 2018) to maintain additional financial flexibility. The company sold over $540 million of assets in 2017 and anticipates cash return on invested capital of 20% or better for 2018.

“Our 2018 investment plan will allow Samson to further delineate the large reserve potential across our assets while generating expected strong production growth at very attractive returns,” said Samson President and CEO Joseph Mills.

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