Perth-based petroleum player Samson Oil and Gas Ltd is in the process of finalising the acquisition of two production properties with consideration for the acquisition totalling US$36.3 million (A$48 million).
Perth-based petroleum player Samson Oil and Gas Ltd is in the process of finalising the acquisition of two production properties with consideration for the acquisition totalling US$36.3 million (A$48 million).
Perth-based petroleum player Samson Oil and Gas Ltd is in the process of finalising the acquisition of two production properties with consideration for the acquisition totalling US$36.3 million (A$48 million).
Settlement is due on May 30, 2006.
The acquisition is being finalised by a combination of debt and equity.
The debt financing has now been completed with Samson's wholly owned subsidiary, Samson Oil and Gas USA Inc., entering into a Convertible Loan Facility Agreement with Macquarie Bank Ltd for the provision of US$21 million (A$28 million).
The loan facility is guaranteed by Samson and is due to be drawn down in full on May 30, 2006.
The arrangement includes the grant of options to Macquarie Bank which were approved by shareholders at an Extraordinary General Meeting held on May 22, 2006.
As a result of this debt facility being executed, the escrow conditions on the equity raising have been met with respect to the 58.5 million shares, which were placed to institutional investors at $0.42 cents per share.
Of the raising, 49.7 million shares were placed with US institutions. The issue has raised $24.57 million before costs. Allotment of the 58.5 million shares has been completed today.
As previously announced, 10 per cent of the issue or 6.5 million shares are being offered to existing shareholders on a priority placement basis to raise a further A$2.73 million before costs.
Documentation for this offer was despatched to shareholders on Friday May 26, 2006. The closing date for the offer is 5pm WST Monday, June 12, 2006.
The production assets being acquired by Samson are located in the Green River Basin in Wyoming which has been Samson's focus since it acquired Kestrel Energy Inc, a company which has an extensive acreage holding in this region.
The assets comprise a 21 per cent equity in the 240 acre crestal portion of the Jonah Field and 16.6 % of a gross acreage of 12,500 acres in the Lookout Wash Field. Both of these fields are in production.
At market close, shares in Samson were down 1 cent to 40 cents.