Tulsa, OK., September 11, 2017 – Samson Resources II, LLC’s (“Samson” or the “Company”) Board of Directors has approved the Company’s commencement of a drilling program to drill five operated wells on the Company’s Fort Union property located in Sweetwater County, Wyoming, as well as an accelerated permitting program in the Powder River Basin of Wyoming.
The drilling program at the Fort Union property will entail using two rigs to drill five operated wells in the Fort Union formation, a liquids rich gas formation, with expected results of 3.7 Bcfe per well (45% liquids expected) at a cost of $2.9 MM per well. The Company will employ a modern completion design to stimulate the reservoir and maximize the deliverability from each well. First sales are expected in the 1st quarter of 2018.
In addition to this drilling program, the Company has embarked on an aggressive State and Federal permitting program across its assets in the Powder River Basin of Wyoming in anticipation of an active drilling program in the second half of 2018 when the next regulatory drilling window is open.
Joseph Mills, President and Chief Executive Officer, commented: “We are very excited to announce the commencement of this drilling program as Samson gets back to what we do best, finding oil and gas production and reserves at attractive rates of return. We believe this program will position us for an active drilling plan in the Greater Green River and Powder River Basin of Wyoming in 2018.”
Samson announced on August 1, 2017 that it is exiting from the East Texas / North Louisiana region in a sale of its assets for $525 MM. The sale of these assets is expected to close in late September 2017. The proceeds from this sale will be used to retire the Company’s existing debt of $210 MM, fund a meaningful distribution to the existing equity holders and fund the Company’s drilling and completion capital program in 2018.
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 II. Actual results could vary materially depending on risks and uncertainties that may affect Samson II and its business. Samson II’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 II to perform well and compete effectively upon its emergence from bankruptcy, (b) the impact of restrictions in Samson II’s exit financing on its ability to make capital investments and pursue strategic growth opportunities, (c) the ability of Samson II to continue to attract and retain qualified employees following emergence, and (d) other risks and uncertainties as disclosed by Samson II in the future. Samson II assumes no obligation to update any forward-looking statement made in this press release to reflect subsequent events or circumstances or actual outcomes.