Samson Oil and Gas has finalised a new credit facility with Mutual of Omaha Bank for up to $25 million, with an initial borrowing base of US$8 million. The facility has a three year term with an interest rate of LIBOR plus 3.75% (approximately 3.908% for January 2013)
Samson has drawn down $4 million from the facility today, with the remaining $4 million to be drawn down after the implementation of a hedging program. The hedging program is expected to be in place within the next two weeks. The loan proceeds will be used to fund Samson's current continuous drilling program in the North Stockyard project in North Dakota. The loan agreement for the new facility provides for periodic re-determinations of the borrowing base based on Samson's estimated proved reserves.