Upon completion, Samson will be able to retire all of its debt, meet liabilities and retain $6.7 million
Samson Oil and Gas USA, Inc. a subsidiary of Samson Oil and Gas Limited (ASX:SSN and OTCQB:SSNYY), has entered into a Sales agreement with EDF Trading for Samson’s Foreman Butte Project located in the Williston Basin in North Dakota and Montana, effective January 1, 2018.
The sales agreement is for a cash consideration of $40 million with a $1 million deposit that is fully refundable if Samson shareholders do not approve of the transaction or if EDF Trading does not secure enough debt financing to complete the transaction.
Samson will also retain a non-operated 15% working interest in the Home Run Field, which is believed to contain the bulk of the identified upside of the project.
Upon completion of the transaction Samson will be able to retire all of its debt, meet all of its other liabilities and retain a cash balance of approximately US$6.7 million
At the time of closing, Samson and EDF will enter into a Joint operating agreement. This will allow Samson to take full advantage of its 15% working interest in the Home Run Field.
