Activities by other companies, approximately 15 miles to the south on the border of Platte and Goshen Counties have raised the profile of this prospective formation. Evidence of increased competitor activity and successful completions are abundant, which Samson believes are largely responsible for the keen interest that the industry is showing in its Niobrara Formation project. Over the last several months, Samson has been engaged in discussions with various industry partners with a view toward sharing a portion of the exploration expense of the project via a farmout. These discussions have resulted in an offer to purchase a portion of Samsons interest at a substantial premium over Samson's original purchase price for the acreage. While Samson has not made any final determination to sell a portion of its interest at this time, such a sale could provide additional working capital that would then be available to drill several new wells, to pay down debt or for other purposes. It is, however, Samsons intent to retain a significant interest in the project in any event. The Niobrara Formation is seen by some commentators in the industry as having characteristics similar to the Bakken Formation, but the Niobrara Formation has not yet had the completion technology that has been developed recently in the Bakken Formation applied to it.
SSN Price at posting:
3.9¢ Sentiment: None Disclosure: Held
