Samson enters revolving credit agreement

TULSA — Samson Resources II LLC has entered into a $500 million revolving credit agreement with a group of lenders led by JPMorgan Chase Bank. The facility has an initial borrowing base limit of $120 million and has a three-year term expiring in October 2020.

“After fully paying down our prior credit facility in September, we are very pleased to announce the execution of our Amended and Restated Senior Secured Credit Facility with an initial borrowing base of $120 million,” CEO Joseph A. Mills said. “This new facility better reflects Samson’s strong financial health and provides additional financial flexibility to grow our premium asset base in the Powder River and Green River Basins of Wyoming.”

Also this week, Samson said it has agreed to buy a nonoperating partner’s position in 6,700 net acres and its working interest in 74 wells that produce about 300 net barrels of oil equivalent per day. The wells are in Converse County, Wyoming. The deal is scheduled to close Nov. 7 with an effective date of Sept. 1. Samson executives said the company will pay for the deal with cash on hand.

“The acquisition is complementary and accretive to Samson and enhances Samson’s core acreage position in the Hornbuckle area of Converse County while expanding Samson’s presence in the Frontier, Shannon, Niobrara and Mowry plays in the Powder River Basin of Wyoming,” Mills said.