Samson Oil & Gas Ltd., Denver and Perth, (NYSE Amex; Australia: SSN) 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 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 formation in North Dakota and the Niobrara formation in Wyoming. The 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.
The sale of these gas properties will cause the company 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, Wyoming, completed in November 2010. The tax benefit is presently expected to be approximately $8 million, though the final amount will not be determined until the tax return for the year ended June 30 is completed and filed.
The transaction is currently expected to close by March 30. The effective date is January 1, 2011.
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