Samson Oil & Gas Limited said March 25 that it has agreed to sell its gas assets in the Jonah and Lookout Wash Fields in the greater Green River Basin (Wyoming) for $6.3 million to a group of private buyers. The transaction is expected to close on or before March 30. The sale will have an effective date of Jan. 1, 2011.
The sale of these properties will cause Samson to recognize a tax loss that will offset some of the income tax liability it previously incurred by the sale of acreage in Goshen County, Wyo., completed in November 2010. The tax benefit is expected to be about $8 million, though the final amount will not be determined until the tax return for the year ended June 30, 2011, is completed and filed.
The sale of these gas assets is consistent with the business strategy Samson announced in October 2010, allowing Samson to focus on developing its two oil plays, the Bakken shale formation in North Dakota and the Niobrara shale formation in Wyoming. That strategy also calls for the company to become debt-free in May 2011 when its debt facility with Macquarie Bank, bearing a current balance of $9.7 million, matures.
Samson Oil & Gas is listed on both the Australian Securities Exchange and the New York Stock Exchange AMEX.