Samson Resources II agrees to sell its powder River Basin assets for $215 million

first_imgUsing proceeds from the sale, the Company will pay off approximately $13 million in debt under its existing reserve-based credit facility and make a cash distribution to its unitholders.  The details of the distribution are expected to be announced in early March 2021.Joseph A. Mills, President and CEO of the Company stated, “We are very pleased to announce the sale of our Powder River Basin assets.  When this sale closes, it will conclude the four-year process of monetizing Samson’s assets and delivering a strong cash return to our equity owners following our emergence from bankruptcy in March 2017.”Following the closing, the Company, which was started by Charles Schusterman in 1971, will begin the process of winding down its affairs and moving toward final dissolution.Jefferies LLC is Samson’s exclusive financial advisor and led the marketing process for the Powder River basin assets.  Willkie Farr & Gallagher LLP acted as legal counsel to Samson. Samson Resources II, has announced that it has entered into a definitive agreement under which Samson will sell all of its Powder River Basin assets to an undisclosed buyer for $215 million in an all-cash transaction.  The Company exited 2020 producing approximately 8,500 barrels of oil equivalent per day (75% oil) from the Powder River Basin.  The sale is expected to close on or around March 4, 2021 and will have a January 1, 2021 effective date.  Following the closing, the Company will have divested substantially all of its upstream assets. The Company’s only remaining upstream oil and gas assets will consist of approximately 24,000 net leasehold acres, 23,000 net mineral acres and 40 non-operated wells, all located in East Texas, Oklahoma and Louisiana, which the Company anticipates divesting in early 2021. The Company exited 2020 producing approximately 8,500 barrels of oil equivalent per day (75% oil) from the Powder River Basin.  The sale is expected to close on or around March 4, 2021 and will have a January 1, 2021 effective date Samson Resources II to sell its powder River Basin assets. (Credit: Pixabay/James Armbruster.) Source: Company Press Releaselast_img read more