TULSA, Okla., April 2, 2019 /PRNewswire/ -- Samson Resources II, LLC ("Samson" or the "Company") announced today that the Board of Directors of the Company has approved a total 2019 Capital Budget of $190 Million. This Capital Budget represents a 29% increase over the $147 Million deployed by the Company in 2018. The Company expects to spend approximately $155 Million drilling and completing wells (65% in the Powder River Basin and 35% in the Green River Basin) with the goal of growing production by 80% year over year. During March 2019, Samson's net operated daily production exceeded 10,000 barrels of oil equivalent per day ("Boe/d") (60% liquids) up from 6,200 Boe/d at the end of 2018.
In addition, the Company announced that it recently brought on a key Niobrara well in the Powder River Basin, the Allemand Fed 34-3031 39-74NH well, located in Converse County, WY. The well had an initial 30-day production rate of 2,248 Boe/d (75% oil) and 228 Boe/d per 1000 ft. lateral and a maximum IP 24 rate of 3,326 Boe/d (77% oil). The well has 9,835 feet of stimulated lateral and was completed with 2,820 pounds of proppant per lateral foot. Samson operates the well and owns a 98% working interest and 81% net revenue interest in the well.
Lastly, the Board of Directors announced today that Samson intends to initiate a Strategic Alternatives Review process to enhance shareholder value, which may include a corporate sale, asset divestitures, a merger or other business combination during 2019.
Joseph A. Mills, President and CEO of the Company stated, "Samson continues to execute on its operational and financial goals. 2018 was a very strong year for the Company as we grew our overall production and produced over 2.36 million barrels of oil equivalent, of which 68% was liquids. We are very pleased with the results of our drilling program in both the Powder River and Green River Basins.
Following the success of our Spearhead Federal Shannon well, we continue to execute on our strategy of delineating the multi-stacked pay horizons across our approximately 160,000 net acres in the Powder River Basin with the strong performance of our recently completed Allemand Fed Niobrara well. Based on its early performance results, the Allemand Fed Niobrara well is one of the top performing Niobrara wells drilled in the Powder River Basin and DJ Basin combined. We believe this well establishes the Niobrara as an emerging and highly economic unconventional target in the Powder River Basin. Our 2019 Capital Budget will enable the Company to continue its delineation and production growth program delivering top tier returns while enhancing the overall shareholder value of the Company."
Mills added, "I am extremely proud of our team's performance as Samson has focused on adding value through the drill bit while remaining committed to maintaining a very strong financial and liquidity position. The Company is debt free today, has an undrawn $160 Million revolver and a strong hedge portfolio with approximately 85% of our proved reserves hedged at $57 per barrel in 2019 and $60 per barrel in 2020. During this strategic review process, Samson will continue to execute on its business plan and focus on our 2019 goals that include meaningful production and reserve growth for the Company."
There is no assurance that the evaluation of Strategic Alternatives will lead to a transaction. The Company does not intend to disclose or comment on developments related to the process unless the Company has determined that further disclosure is appropriate or required by law.
The Company has retained Jefferies LLC as its financial advisor to assist with the evaluation of strategic alternatives.
Samson is a privately held onshore exploration and production company headquartered in Tulsa, Oklahoma. The Company holds approximately 208,000 net acres in the Powder River and Greater Green River basins in Wyoming. For more information, please visit our website at www.samson.com.
SOURCE Samson Resources II, LLC