US-based onshore exploration and production company Samson Resources II has signed a definitive agreement to divest all of its assets in Powder River Basin for $215m.

However, the company did not disclose the name of the buyer.

The assets being sold produced around 8,500 barrels of oil equivalent per day (75% oil) last year.

The divestment is a part of Samson’s efforts to shed all its assets to settle its debt and pay its equity owners after it emerged from bankruptcy in 2017.

The proceeds from this all-cash transaction will be used to pay around $13m in debt under its existing reserve-based credit facility and make a cash distribution to its unit holders.

Samson Resources II president and CEO Joseph A Mills said: “We are very pleased to announce the sale of our Powder River Basin assets.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“When this sale closes, it will conclude the four-year process of monetising Samson’s assets and delivering a strong cash return to our equity owners following our emergence from bankruptcy in March 2017.”

The transaction is expected to close on or around 4 March 2021.

Once it closes, Samson Resources II will have sold nearly all of its upstream assets with the exception of 24,000 net leasehold acres, 23,000 net mineral acres and 40 non-operated wells situated in East Texas, Oklahoma and Louisiana.

The company also plans to sell these remaining assets early this year.

Notably, the Oklahoma-based firm was established in 1971 as Samson Investment Company. In 2011, it was acquired by a group of private equity investors for nearly $7.2bn to form Samson Resources.

However, the company entered Chapter 11 bankruptcy in September 2015 following the oil price crash.

It emerged from bankruptcy in March 2017 as Samson Resources II and now aims to start the process of liquidation and move towards final dissolution, after all assets are divested.