North Stockyard Sale
As previously advised, Samson has executed a purchase and sale agreement with respect to its interest in the North Stockyard Field and received a $1 million deposit as part of the $15 million consideration. The buyer has indicated that it now plans to close on October 20th. Accordingly Samson has accepted an extension request, along with a $50,000 fee to accommodate this extension.
Mutual of Omaha Bank has accepted our waiver request to allow the current debt facility to be reduced by $11.5 million to $19 million prior to October 31st. Mutual of Omaha Bank has also agreed that a portion of the sale proceeds (in amount to be agreed upon) may be included in the amount needed to complete the $5 million equity required to be raised by Samson. Mutual of Omaha Bank has also agreed that this may be accomplished prior to November 15th, 2016. The equity raised in April this year would be included in the $5 million required to be raised.
Samson is publishing its June 30th accounts tomorrow and, as of that date, the Company will report that it is in compliance with all other covenants associated with its debt facility.
As previously reported, Samson’s June 30th reserves report showed significant growth in its Proved Reserves with an estimated $126 million of net present value (at a 10% discount rate). Included in this Proved reserve estimate is a Proved Developed Producing reserve valued at $62 million (at a 10% discount rate) compared to the outstanding draw from the Bank secured by the facility of only $30.5 million.