Mutual of Omaha Bank increased Samson Oil’s borrowing base to $20 million with the expectation of a further increase in Q1/17 as part of a new syndicated loan involving another bank.

Following the closing of the North Stockyard sale, Samson’s outstanding debt was reduced to $19 million, enabling Mutual of Omaha Bank to increase the company’s borrowing base to $20 million. Samson expects the bank to further increase its borrowing base in the first quarter of 2017 as part of a new syndicated loan involving another bank.

The scope of the expanded debt facility will depend on the value of Samson’s proved reserves as of November 30, which in turn will depend on commodity pricing and well performance.

The closing of the North Stockyard sale and pay-down of the debt was a condition of the loan facility amendment that financed the acquisition of the Forman Butte project. That amendment also required Samson to raise a total of $5 million in equity. The bank has now agreed that this condition has been met. Accordingly, Samson does not intend to raise additional equity capital at this time.