Samson Oil and Gas has signed an agreement with an undisclosed US partner to sell 24,166 acres of its 40,240 acre holdings in Goshen County in Wyoming, US, for a price between $61m and $79m.
The Goshen County holdings contain the Niobrara Formation, an oil play that could be developed using horizontal drilling techniques.
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Samson was looking for a partner to fund the development of the Goshen County Project and was required to sell a part of the project for the purpose.
The transaction will allow Samson to achieve several objectives including repay its existing debt and finance the development of its Williston Basin acreage, which has significant oil flows, and its onshore Gulf Coast Basin project.
Under the agreement, Samson will hand over its working interest in the southern portion of the Goshen County holdings to the partner, but retain about 4.8% royalty interest in the leases sold.
Samson will also retain the remaining interests in the northern part of the existing project, which amounts to 16,300 net acres.
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By GlobalDataSamson plans to drill and develop its part of the acreage in the near future.
