Tulsa, Oklahoma-based Samson Resources II LLC has completed its transition to become a Powder River Basin-focused pure-play E&P with the sale of its Greater Green River Basin assets, the company said Sept. 30.

The private E&P, which also sold some non-core acreage in Johnson County, Wyoming, also said the company is exploring strategic options for its assets in the Powder River Basin (PRB), where it holds about 154,000 net acres.

The PRB in recent years has attracted oil and gas companies eager to tap resources of its stacked plays, including the Niobrara and Mowry shales.

Samson’s strategic alternative review of its PRB assets will be launched in fourth-quarter 2019, CEO Joseph A. Mills said Oct. 1 in a separate news release.

But the company warned “There is no assurance that the evaluation of strategic alternatives will lead to a transaction.”

The two buyers in the Green River Basin and non-core acreage sales were not disclosed.

The non-core acreage—8,500 acres in the PRB—had no associated production, Samson said.

Proceeds from the sales will be used for general corporate purposes and payment of a $46 million distribution scheduled to be paid on Nov. 20, the company said. The Greater Green River Basin asset sale had an effective date of July 1, 2019.

Samson in a December 2018 investor presentation described its Greater Green River Basin assets as a “highly consolidated liquids-rich play.” Production at the time was 2,950 barrels of oil equivalent (boe)—53% liquids.

The company has a net production of 5,000-6,000 boe/d in the PRB, where its drilling capital budget for 2019 is an estimated $98 million.

“Samson remains committed to executing its business plan and to the continued development of its extensive PRB assets,” Mills said in the Sept. 30 release before mentioning “recent strong drilling results.” He added that exploring strategic alternatives for the assets is “consistent with the strategy the company has pursued since emerging from bankruptcy in 2017.” 

Samson reported Oct. 1 that two horizontal Turner Formation wells in its Hornbuckle area in Converse County, Wyoming, exceeded predrill type curves.

The Brushy Creek Fed 3772-0631 # 1FH had an IP30 of 1,708 boe/d (87% oil) from a 9,716-ft lateral length, and the Reynolds Fed 3872-3106 # 3FH had an IP30 of 1,674 boe/d (88% oil) from a 9,803-ft lateral length, the company said.

“The Brushy Creek and Reynolds wells represent a meaningful step-out away from existing Turner production and help expand the growing reserve potential of the Turner formation in the Powder River Basin, where Samson has a significant leasehold position,” Mills said. “These wells move to prove up [about] 17,000 net contiguous acres in our operated Hornbuckle area for the Turner formation alone.”