I don't think there is much doubt that SSN will use its placement capability of 300,000,000 shares. Question is if they go bigger with CR .... hence the "if any" in my comments. At 0.005 cents its only $1.5M raised.
This is what is public info (below). The part that is always of interest is what is the bank doing. Do they truly back down on the total of $5M equity to be raised. Are they comfortable with the PDP PV10. Is the loan presently in a Special Mention or Classified category due to EBITDAX concerns. Do they have to provide a loan loss reserve provision. Those are the tricky finance steps going on in the background. They will be resolved one way or the other - TB only real influence is to deliver on the operational aspects which are the sale of NS and the production at FB. That will get the balance sheet stronger and the P&L going in the right direction - both of which make the bank happier.
On September 29, 2016, APEG Energy, LP, an affiliate of Angelus Private Equity Group (the “Purchaser”), exercised its right under the Purchase and Sale Agreement, dated as of June 30, 2016, between Samson Oil & Gas Limited (the “Company”) and the Purchaser, to extend the closing deadline for its purchase of our North Stockyard assets for an additional thirty (30) days, from September 30, 2016 to October 30, 2016, by notice and payment to the Company of a $50,000 extension fee. The Purchase and Sale Agreement was previously filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on July 7, 2016.
Modification of Credit Agreement
On September 28, 2016, the Company’s primary lender, Mutual of Omaha Bank (“Mutual of Omaha”), agreed to extend the deadline by which the Company is obligated to pay down $11.5 million of the outstanding balance under its credit facility to October 31, 2016. Mutual of Omaha has also agreed to extend the deadline by which the Company must raise a total of $5 million in equity under the credit facility from September 30, 2016 to November 15, 2016.
Samson issued a press release on September 29, 2016 announcing the material terms of the aforementioned extension and modification. A copy of the press release is attached to this Current Report on Form 8-K as Exhibit 99.1.
On September 30, 2016, the Company, Mutual of Omaha and certain affiliates of the Company, including Samson Oil and Gas USA, Inc. and Samson Oil and Gas USA Montana, Inc., executed a Fifth Amendment to Credit Agreement, dated as of September 29, 2016 (the “Amendment”), to memorialize the terms of the previously agreed modifications to the credit agreement. The foregoing does not constitute a complete summary of the terms of the Amendment, and reference is made to the complete text of the Amendment, which is attached hereto as Exhibit 10.1 and incorporated by reference herein.
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