Perth-based petroleum player Samson Oil and Gas NL has taken the first step towards buying into United States assets for $50.4 million.
In details of a letter of offer from Stanley Energy announced after market close today, Samson revealed it will acquire rights to production assets in Wyoming' Green River Basin, where Samson already has a presence.
The assets consist of 16.6 per cent and 20.1 per cent interests in two oil and gas fields, currently producing gas.
Dependent on financing, the transaction is retrospective to November 1, 2005, taking advantage of strong gas prices towards the end of last year, according to the group.
Oil and gas advisory consultants Sproule Associates Inc, estimate the fields contain significant reserves.
"It is expected that subsequent to the effective date of the transaction, at least three wells will have been completed.
"The first of these has been completed and the rig is currently drilling the second of three wells," Samson managing director Terry Barr told the Australian Stock Exchange today.
Payment will be made in US dollars, according to the Samson statement.
