Samson Resources II, LLC Announces Redetermination and Extension of Reserve Based Lending Borrowing Base at $75 Million and Continuation of Drilling Plan in the Powder River Basin
TULSA, Okla., Oct. 22, 2020 /PRNewswire/ -- Samson Resources II, LLC ("Samson" or the "Company") announced today that, pursuant to its regularly scheduled redetermination process, the Borrowing Base under its senior secured revolving credit facility has been redetermined by its lender group at $75 million with a one-year extension to November 2022. The Company ended the third quarter of 2020 with net debt of $3.5 million, providing ample liquidity for Samson to continue its development plans. Samson re-initiated its drilling and completion program in the Powder River Basin during August 2020.
Joseph A. Mills, President and CEO of the Company stated, "Beginning in August 2020, Samson resumed its successful development program of our multiple horizon, oil-weighted opportunity set in the Powder River Basin. Samson is currently the only company running a horizontal rig in the Powder River Basin of Wyoming. Samson's low operating cost structure, strong hedge book and efficient drilling program enables the Company to maintain stable production levels with line of sight to generating free cash flow and we anticipate being completely de-levered by the end of the second quarter of 2021. In addition, we project having over 100 federal permits approved by the end of the fourth quarter of 2020 to facilitate further successful development of Samson's 132,000 net acres in the Powder River Basin."
Josh C. Anders, Chief Financial Officer of the Company commented, "We appreciate the continuing robust support from our bank group by redetermining the reserve based lending facility borrowing base at $75 million and providing a one-year extension to November of 2022. The Company is looking forward to a long-term partnership with the addition of two new facility banks, Arvest Bank and Commerce Bank."
Samson is a privately held onshore exploration and production company headquartered in Tulsa, Oklahoma. The Company holds approximately 132,000 net acres in the Powder River Basin in Wyoming. For more information, please visit our website at www.samson.com.
Forward-looking Statement
In this press release, all statements that are not purely historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may be identified by the words "believe," "expect," "anticipate," "project," plan," "estimate," intend," "potential" and other similar expressions. Forward-looking statements are based on currently available business, economic, financial and other information and reflect management's current beliefs, expectations and views with respect to future developments and their potential effects on Samson. Actual results could vary materially depending on risks and uncertainties that may affect Samson and its business. Samson's actual actions and results may differ materially from what is expressed or implied by these statements due to a variety of factors, including (a) the ability of Samson to perform well and compete effectively, (b) the impact of restrictions in Samson's Reserve Based Lending facility on its ability to make capital investments and pursue strategic growth opportunities, (c) the ability of Samson to continue to attract and retain qualified employees, and (d) other risks and uncertainties as disclosed by Samson in the future. Samson assumes no obligation to update any forward-looking statement made in this press release to reflect subsequent events or circumstances or actual outcomes.
Media Contact: Brian Maddox, 212-850-5661
SOURCE Samson Resources II, LLC
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