Tulsa, OK., September 11, 2017 – Samson Resources II, LLC’s (“Samson” or the
“Company”) Board of Directors has approved the Company’s commencement of a
drilling program to drill five operated wells on the Company’s Fort Union property
located in Sweetwater County, Wyoming, as well as an accelerated permitting
program in the Powder River Basin of Wyoming.
The drilling program at the Fort Union property will entail using two rigs to drill
five operated wells in the Fort Union formation, a liquids rich gas formation, with
expected results of 3.7 Bcfe per well (45% liquids expected) at a cost of $2.9 MM
per well. The Company will employ a modern completion design to stimulate
the reservoir and maximize the deliverability from each well. First sales are
expected in the 1st quarter of 2018.
In addition to this drilling program, the Company has embarked on an aggressive
State and Federal permitting program across its assets in the Powder River Basin
of Wyoming in anticipation of an active drilling program in the second half of
2018 when the next regulatory drilling window is open.
Joseph Mills, President and Chief Executive Officer, commented: “We are very
excited to announce the commencement of this drilling program as Samson gets
back to what we do best, finding oil and gas production and reserves at attractive
rates of return. We believe this program will position us for an active drilling
plan in the Greater Green River and Powder River Basin of Wyoming in 2018.”
Samson announced on August 1, 2017 that it is exiting from the East Texas /
North Louisiana region in a sale of its assets for $525 MM. The sale of these
assets is expected to close in late September 2017. The proceeds from this sale
will be used to retire the Company’s existing debt of $210 MM, fund a meaningful
distribution to the existing equity holders and fund the Company’s drilling and
completion capital program in 2018.
Samson is a privately held onshore exploration and production company
headquartered in Tulsa, Oklahoma.
In this press release, all statements that are not purely historical facts are
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended. Forward-looking statements may be identified by the words
“believe,” “expect,” “anticipate,” “project,” plan,” “estimate,” intend,” “potential”
and other similar expressions. Forward-looking statements are based on
currently available business, economic, financial and other information and
reflect management’s current beliefs, expectations and views with respect to
future developments and their potential effects on Samson II. Actual results
could vary materially depending on risks and uncertainties that may affect
Samson II and its business. Samson II’s actual actions and results may differ
materially from what is expressed or implied by these statements due to a variety
of factors, including (a) the ability of Samson II to perform well and compete
effectively upon its emergence from bankruptcy, (b) the impact of restrictions in
Samson II’s exit financing on its ability to make capital investments and pursue
strategic growth opportunities, (c) the ability of Samson II to continue to attract
and retain qualified employees following emergence, and (d) other risks and
uncertainties as disclosed by Samson II in the future. Samson II assumes no
obligation to update any forward-looking statement made in this press release to
reflect subsequent events or circumstances or actual outcomes.