Tulsa-based Samson Resources II LLC is accelerating its drilling plans in Wyoming, with five wells underway in Sweetwater County and a ramp-up planned next year in the Powder River Basin.
The privately held producer, which emerged from bankruptcy earlier this year, said it would drill five operated wells on its Fort Union property using two rigs. Production per well is estimated 3.7 Bcfe, with each well costing on average $2.9 million. First sales are expected in early 2018.
“We are very excited to announce the commencement of this drilling program as Samson gets back to what we do best, finding oil and gas production and reserves at attractive rates of return,” said CEO Joseph Mills.
“We believe this program will position us for an active drilling plan in the Greater Green River and Powder River Basin of Wyoming in 2018.”
In addition to an accelerated drilling program, Samson has begun an aggressive plan to acquire state and federal permits for its Powder River projects ahead of an active drilling program in the second half of 2018, when the next regulatory drilling window is open.
The producer had signaled in August it would turn its attention to Wyoming’s Green River and Powder River basins after selling East Texas and North Louisiana assets for $525 million. The sale is set to be completed later this month, with proceeds used to retire existing debt of $210 million to fund a distribution and a drilling/completion program in 2018.
Formerly Samson Resources Corp., the formerly publicly held producer filed for Chapter 11 in September 2015. Since emerging from bankruptcy in March, it has completed close to $20 million of asset and equipment sales.