Samson Oil and Gas USA Inc. (a wholly owned subsidiary of Samson Oil and Gas Ltd.) has closed the transaction to acquire the Foreman Butte acquisition.
The acquisition includes oil and gas leases, producing oil and gas wells, currently shut-in wells and associated facilities in North Dakota and Montana for consideration of $16 million.
Samson’s existing primary lender has funded $11.5 million of the acquisition price as part of an expanded debt facility. This facility will initially bear an interest rate equal to 6% plus the monthly LIBOR interest rate. The seller has accepted a $4 million promissory note secured by a second lien with a 12-month term and a 10% interest rate.