TULSA, Okla., Dec. 14, 2017 /PRNewswire/ -- Samson Resources II, LLC ("Samson" or the "Company") announced today that it has executed an agreement to divest all of its Wamsutter assets, located in Carbon and Sweetwater Counties of Wyoming, which are considered non-core to the Company's portfolio. The Wamsutter assets were sold for a total cash purchase price of $34.0 MM to an undisclosed buyer. The effective date of the transaction will be January 1, 2018, and closing is expected to occur prior to January 15, 2018.
The Wamsutter assets currently produce approximately 9.0 MMcfe/day, net to Samson's interest, from a total of 106 producing wells. The sale includes all of Samson's interest in ~11,300 net acres and associated surface facilities. The sale equates to $3,700 per flowing Mcfe or $3,000 per net acre.
Joseph Mills, President and Chief Executive Officer of Samson, commented, "This sale represents another important step in Samson's portfolio management and divesting of non-core assets while focusing on our core assets in the Powder River and Green River Basins of Wyoming. The proceeds of this sale will be used to partially fund our 2018 drilling program and allow us to capitalize on our robust drilling opportunities." Mills further stated, "Samson is well ahead of its business plan, since emerging from bankruptcy on March 1, 2017, to establishing a strong balance sheet and a solid base of premium assets."
Samson is a privately held onshore exploration and production company headquartered in Tulsa, Oklahoma.
In this press release, all statements that are not purely historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may be identified by the words "believe," "expect," "anticipate," "project," plan," "estimate," intend," "potential" and other similar expressions. Forward-looking statements are based on currently available business, economic, financial and other information and reflect management's current beliefs, expectations and views with respect to future developments and their potential effects on Samson. Actual results could vary materially depending on risks and uncertainties that may affect Samson and its business. Samson's actual actions and results may differ materially from what is expressed or implied by these statements due to a variety of factors, including (a) the ability of Samson to perform well and compete effectively, (b) the impact of restrictions in Samson's Senior Credit Facility on its ability to make capital investments and pursue strategic growth opportunities, (c) the ability of Samson to continue to attract and retain qualified employees, and (d) other risks and uncertainties as disclosed by Samson in the future. Samson assumes no obligation to update any forward-looking statement made in this press release to reflect subsequent events or circumstances or actual outcomes.
SOURCE Samson Resources II, LLC