Samson’s new Roosevelt project in Roosevelt County is being purchased in three tranches, and the Tranche 1 is a 100% working stake in a 20,028-acre block that carries with it an obligation for Samson to drill two wells.
Following the drilling of the two appraisal wells in Tranche 1, FPEC will have the right to back into a 33.34% position in both tranches by reimbursing Samson’s acreage and drilling costs to the extent of that equity.
Tranche 2 is an option to acquire a 100% working stake in 20,000 additional acres from FPEC that Samson will earn upon the completion of the initial two wells in Tranche 1.
Tranche 3 is a 50,000-acre area covered by an Area of Mutual Interest where Samson and FPEC have agreed to jointly acquire additional leases, with Samson holding a 66.66% working interest and FPEC a 33.34% working interest.
Samson has already been pursuing drilling permits for three drilling locations, and two of these three locations will be drilled this northern hemisphere fall to test the middle member of the Bakken Formation.
