2010-09-08-2010-09-07

The assets include 19,451 acres in the Denver-Julesberg Basin in Goshen County, and the buyer intends to acquire an additional 4,300 acres in a second closing.

An undisclosed E&P company based in the U.S. has closed the first purchase of oily Niobrara interests in Wyoming from Denver-based Samson Oil & Gas Ltd. (NYSE Amex; Australia: SSN) for US$63.7 million in cash.

The amount includes the US$10 million deposit previously received by Samson from the buyer. The assets include 19,451 acres in the Denver-Julesberg Basin in Goshen County.

The second closing will be for 1,920 acres associated with approved drilling permits, valued at US$6.288 million. Samson also expects a further approved drilling permit will be accepted by the buyer before the second closing for another 1,339 acres, valued at US$4.385 million.

Samson is also working on correcting title defects identified by the buyer regarding another 1,056 acres.

The total deal is for 23,766 net acres for a value of approximately US$74.4 million. The transaction was previously valued between US$61 million and US$79 million.

Samson will retain an average 4.8% royalty interest in the acquired leases and will hold the remaining interests in approximately 16,300 acres in the northern portion of the leasehold.

Samson will use proceeds to pay an existing debt facility and finance its drilling programs in Goshen County, the Williston Basin and onshore the Gulf Coast Basin.

The second deal is expected to close around Sept 20.