Samson Oil and Gas finalized a new credit facility with Mutual of Omaha Bank for up to $25 million, with an initial borrowing base of $8 million. The facility has a three-year term with an interest rate of LIBOR plus 3.75%.
Loan proceeds will be used to fund Samson’s continuous drilling program in the North Stockyard project in North Dakota. The loan agreement for the new facility provides for periodic re-determinations of the borrowing base based on Samson’s estimated proved reserves.
Samson has drawn down $4 million from the facility, with the remaining $4 million to be drawn down after the implementation of a hedging program. The hedging program is expected to be in place within the next two weeks.
Samson Oil & Gas Limited is a U.S./Australian oil & gas company focusing on oil production in the Niobrara and Bakken formations in the U.S.