Samson Oil and Gas Ltd. received notification on March 14 from the NYSE MKT LLC that its stockholders’ equity has fallen below the required level as at Dec. 31, 2015.
Specifically, Samson is not in compliance with Section 1003(a)(i), requiring stockholders’ equity of $2 million or more if it has reported losses from continuing operations and/or net losses in two of its three most recent fiscal years, and Section 1003(a)(ii), requiring stockholders’ equity of $4 million or more if it has reported losses from continuing operations and/or net losses in three of its four most recent fiscal years. As of Dec. 31, 2015, Samson had a stockholders’ equity deficit of $197,183.
The NYSE MKT has invited Samson to formulate and present a plan to rectify this situation prior to April 13. Samson intends to present a plan within this timeframe, and it anticipates that the plan will focus on the Williston Basin acquisition that it is continuing to pursue. This acquisition has attracted Samson’s primary lender’s financial support and is expected to close prior of the end of the current quarter. The company is confident that, after the acquisition, it will be in a position to regain full compliance with the required level of stockholders’ equity prior to Sept. 14, 2017, as required by the NYSE MKT.
Samson’s recent settlement of its dispute with Halliburton is also expected to help it regain compliance. Pursuant to the settlement, Samson will receive a cash payment of $725,000 and a credit for $172,000 of revenue previously held in suspense, for a total of $897,000 of additional company funds.
Samson’s ADSs will continue to be listed on the NYSE MKT while it regains compliance with the stockholders’ equity listing standards, subject to Samson’s compliance with other continued listing requirements. The NYSE MKT notification does not affect Samson’s business operations or its SEC reporting requirements and does not conflict with or cause an event of default under any of the Company’s material debt or other agreements.