Samson Oil & Gas Limited (ASX: SSN; NYSE MKT: SSN):
Completed Sale of State GC assets
Further to the announcement made on May 12th, 2017, Samson
advises that it has closed on the sale of its State GC assets in New
Mexico to a private US-based energy company. The sales price of $1.2
million has been received by Samson and applied to pay down Samson’s
current facility with Mutual of Omaha Bank. Subject to Samson’s
compliance with the terms of the facility, the paid down funds remain
available for redraw. Notwithstanding the sale of the State GC assets,
Samson’s borrowing base remains at $20 million, in addition to its
outstanding $4 million term loan.
Samson expects to record a profit on this sale of approximately $0.6
million (unaudited)
Production status
Samson continues to actively develop its production capacity in the
Foreman Butte project. Its operated wells in this project produced a
record high daily production number of 1,294 BOPD on May 23rd. This
gross operated rate is equivalent to 1,000 BOPD net to Samson including
its non-Operated production in the same asset. This compares to our
March Quarter average oil rate of 720 BOPD (net to Samson).
This most recent increase in production from the Foreman Butte can be
attributed to several factors, including pump optimization. For example,
a change out to a jet pump on the R Field increased the oil rate from
105 BOPD to 140 BOPD and the installation of an electrical submersible
pump in the Riddle well increased daily production of that well from 5
to 20 BOPD
Oil differential
The recent improvement in the WTI oil price, coupled with a better oil
price differential suggests a corresponding improvement in Samson’s cash
flow and profitability. Samson’s improved differential (the spread
between market prices and prices actually received by the producer at
the well head) is attributable to the commencement of the Dakota Access
Pipeline System, which has increased the pipeline take away capacity in
the Williston Basin and lowered Samson’s oil price differential from
$6.50 per barrel to $3.85 per barrel.
SAMSON OIL & GAS LIMITED
TERRY BARR
Managing Director
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.
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 3,283 million ordinary shares issued and
outstanding, which would be the equivalent of 16.41 million ADSs.
Accordingly, based on the NYSE MKT closing price of US$0.53 per ADS on
May 30th, 2017, the Company has a current market
capitalization of approximately US$7.5 million. Correspondingly, based
on the ASX closing price of A$0.004 for ordinary shares on May 30th,
2017, the Company has a current market capitalization of approximately
A$11.3 million.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170530006445/en/
Copyright Business Wire 2017
Source: Business Wire
(May 30, 2017 - 9:00 PM EDT)
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