As part of Samson’s broader financing plan to ensure its participation in the full development of the North Stockyard project, Samson Oil & Gas Limited has agreed to divest half of its equity position in the undeveloped acreage in the North Stockyard project to Slawson Exploration Company, Inc. (SECI) and a third party for $5.562 million in cash and other consideration.

Samson has retained its full interest in currently producing wells in the field. As a consequence of the transaction Samson and Frontier have terminated the Rig 24 contract (with no penalty payment) and Slawson has contracted the rig for the ongoing development of the North Stockyard project.

The sale agreement calls for Samson to receive cash consideration of up to $5.562 million. Along with the undeveloped acreage, Samson will transfer a 25% interest in the drilled but not yet completed Billabong and Sail and Anchor wells. The cash portion of the purchase price is subject to the delivery of a useable wellbore in Billabong, valued by the agreement at $891,000, and other customary post-closing adjustments.

Tags: Samson Oil & Gas Limited