US-based Samson Resources II is set to begin a drilling programme covering five operated wells on its Fort Union property located in Sweetwater County, Wyoming, after receiving an approval from its board of directors.
The company is also undertaking an accelerated permitting programme in the Powder River Basin of Wyoming.
Under the drilling programme, two rigs will be used to drill five operated wells in the Fort Union formation.
Through the campaign, the company intends to achieve 3.7 billion cubic feet equivalent per well at a cost of $2.9m each.
Samson Resources II president and CEO Joseph Mills said: “We are very excited to announce the commencement of this drilling programme as Samson gets back to what we do best, finding oil and gas production and reserves at attractive rates of return.
“We believe this programme will position us for an active drilling plan in the Greater Green River and Powder River Basin of Wyoming in 2018.”
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By GlobalDataIn order to stimulate the reservoir and maximise the deliverability from each well, the company is expected to employ a modern completion design, with first sales expected in the first quarter of next year.
With respect to the state and federal permitting programme across its assets in the Powder River Basin of Wyoming, the company is targeting an active drilling programme in the second half of next year.
The previously announced sale of the company’s assets in the East Texas / North Louisiana region for $525m is scheduled to complete later this month.
The company intends to use the sale proceeds to clear its existing debt of $210m, while a portion of the amount will be used to fund its drilling and completion capital programme next year.