Samson Oil & Gas Limited (ASX: SSN; NYSE MKT: SSN):
As previously advised Samson has executed a purchase and sale agreement
with respect to its interest in the North Stockyard Field and received a
$1 million deposit as part of the $15 million consideration. The buyer
has indicated that it now plans to close between September 15th
and the 25th. Accordingly Samson has accepted an extension
request, along with a $50,000 fee to accommodate this extension.
Following the closing of this transaction Samson is expected to reduce
its debt facility to $19 million.
Samson’s motivation to complete this sale was to be able to concentrate
its capital and human resources on the recently acquired Foreman Butte
project. This project has been operated by Samson for approximately
three months, resulting in a substantial increase in production rate and
Proved Developed Producing (PDP) reserves on account of an extensive
round of workovers conducted since it became Operator.
Samson is due to publish an updated reserves estimate during September
once the audit of its annual financial statements is complete.
The Foreman Butte project is currently testing two production
enhancement techniques, a fresh water clean out of the Evans 1-10H well
and an acid stimulation of the Maris 1-16H well. A jet pump has been
installed on the Evans well and it has responded with an increased fluid
rate. A similar installation is underway on the Maris well. These pumps
will increase the fluid offtake and should enhance Samson’s
understanding of the viability of each technique.
SAMSON OIL & GAS LIMITED
TERRY BARR
Managing Director
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$0.715 per ADS on
August 31st, 2016, the Company has a current market capitalization of
approximately US$11.5 million (the options have been valued at an
exchange rate of 0.75). 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 August 31st, 2016, the Company has a current market
capitalization of approximately A$16.1 million.
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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160831006596/en/
Copyright Business Wire 2016
Source: Business Wire
(August 31, 2016 - 9:00 PM EDT)
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