TULSA, Okla., Jan. 4, 2018 /PRNewswire/ — Samson Resources II, LLC (“Samson” or the “Company”) announced today that its board of directors has approved a 2018 total capital budget in the range of $105 to $115 MM. The capital program is designed to enhance shareholder value by growing 2018 production volumes by approximately 20 percent as compared to 2017 exit production rates and advancing the delineation and development of the company’s core assets while maintaining a positive net cash position. The Company anticipates spending $85 to $95 MM toward its drilling and completion program and approximately $20 MM toward its leasing, seismic, recompletion and workover program.
Some highlights of the 2018 Capital Program are as follows:
- The Company plans to drill approximately 25 to 30 gross wells and 15 to 20 net wells in the Powder River and the Green River Basin(s), Wyoming.
- The focus in the Powder River Basin will be to further delineate the potential of the Shannon / Frontier / Turner / Niobrara and Mowry formations
- The focus in the Green River will be to further develop the Company’s extensive Fort Union / Lewis assets.
- Deliver anticipated cash return on invested capital of 20 percent or better.
- The capital program will be funded from operating cash flows and cash on–hand. Samson has approximately $200 MM of liquidity (pro-forma for the Wamsutter divestiture) with approximately $95 MM of cash available for use and a $107 MM undrawn RBL Revolver for future investment opportunities.
- Capital program is expected to deliver approximately 20 percent oil growth year-over-year as compared to 2017 exit volumes.
- The Company expects to divest an additional $40 to $60 MM of non-core assets in 2018 (which includes the previously announced sale of the Wamsutter assets, that will close in January 2018) to maintain additional financial flexibility. The Company sold over $540 MM of assets in 2017.
“Our 2018 investment plan will allow Samson to further delineate the large reserve potential across our assets while generating expected strong production growth at very attractive returns,” said Joseph Mills, President and Chief Executive Officer of Samson. “Samson is focused on delivering shareholder return with a balanced and low risk growth strategy. Samson today has a strong balance sheet and ample liquidity to drive superior returns from the drill bit.”
Samson is a privately held onshore exploration and production company headquartered in Tulsa, Oklahoma.