TULSA, Okla., May 9, 2018 /PRNewswire/ -- Samson Resources II, LLC ("Samson") announced today that it has executed an agreement to divest a portion of its position in Converse County, WY to an undisclosed buyer in exchange for cash consideration of $44.4 million and the receipt by Samson of 15,000 net acres (all subject to customary adjustments). The acreage to be received by Samson under the transaction will include all depths below the Fort Union formation, is currently undedicated and will bolt-on to Samson's core acreage position in Johnson County, WY.
In exchange, Samson has agreed to sell approximately 7,000 net acres, Samson's interests in 17 wells and overriding royalty interests. Samson considers the assets non-core to its portfolio.
The effective date of the transaction will be April 1, 2018 and closing is expected to occur prior to May 31, 2018. After closing, Samson will own rights to more than 152,000 net acres in the Powder River Basin.
Joseph Mills, President and Chief Executive Officer of Samson, commented, "This sale represents another important step in Samson's portfolio management strategy of divesting non-core assets and increasing focus 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 further capitalize on our robust drilling opportunities." Mills further stated, "Samson continues to execute on its plan to deliver shareholder value with a lower risk growth strategy while remaining focused on balance sheet strength."
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