Tulsa’s Samson Resources II, LLC announced this week the planned sale of all of its Powder River Basin assets in Wyoming in a $215 million deal, a move that will put the company closer to a total shutdown.
The sale to the undisclosed buyer will close around March 4, 2021 with an effective date of Jan. 1, 2021, according to the company announcement. The company said its assets in the Powder River Basin produced 8,500 barrels of oil equivalent a day and will be the last of the upstream assets to be divested by Samson Resources,
The company will have about 24,000 net leasehold acres, 23,000 net mineral acres and 40 non-operated wells in Oklahoma, East Texas and Louisiana still in assets following the Powder River Basin sale.
Joseph A. Mills, President and CEO of the Company said the divestiture of the remaining assets will be accomplished sometime early this year.
“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.”
Using 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.
Mills said after the closing, the company that was formed in 1971 will start the process of winding down its affairs, moving to final dissolution.
In 2011, Samson reportedly owned 4,000 wells and partial ownership in more than 12,500 wells. Just two years ago, Samson announced the sale of 15,000 net acres in Wyoming in a $44.4 million cash agreement with an undisclosed buyer.
Jefferies LLC is Samson’s exclusive financial advisor in the latest divestiture and led the marketing process for the Powder River basin assets. Willkie Farr & Gallagher LLP acted as legal counsel to Samson.
Source: Samson Resources