Samson Investment Co.

Transaction Type
Sellers
Marketers
Basin
Permian, Midland
Post Date
Close Date
Estimated Price
0MM
Description

Privately held, Tulsa, Okla.-based Samson Investment Co. has retained RBC Richardson Barr to sell all of its Permian Basin producing properties.

The package includes operated and nonoperated interests in 506 producing units and wells and 417 proved undeveloped locations covering 137,000 net acres (52% held-by-production) in Texas and New Mexico. Of the 417 proved undeveloped locations, 368 are in the Wolfberry play across Midland Basin. The offering includes more than 10,000 net acres prospective for the Bone Spring (Avalon) shale in southern New Mexico.

Production from March through May was 5,350 barrels of oil equivalent per day (40% oil). It's expected to increase to 5,750 barrels equivalent per day in October due to drilling successes. Monthly cash flow averaged $6.5 million from March through May.

Total proved reserves are 57.5 million barrels equivalent (57% oil, 46% proved developed producing) and proved and probable reserves are 85.2 million barrels equivalent.

Upside includes continuing Wolfberry development with nearly 500 drilling locations on 40-acre spacing across leasehold, which include 363 proved undeveloped, 68 probable and 55 possible locations.

Data rooms open Oct. 4. The bid due date is Nov. 4. Contact Craig R. Lande, 713-585-3335, craig.lande@rbccm.com.