Chesapeake Energy Corp., Oklahoma City, (NYSE: CHK) has acquired certain oil assets in the Niobrara trend in Goshen County, Wyoming, from Denver-based Samson Oil & Gas Ltd. (NYSE Amex; Australia: SSN) for approximately $74 million in a three-part transaction.
In June, Chesapeake acquired 100% of Samson's working interest in the subject leases, with Samson retaining a royalty interest. Samson subsequently closed an additional portion of the sale in September for delivery of drilling permits for three state leases.
Samson has retained 17,000 net acres immediately to the north of the acquired assets in its Hawk Springs project and intends to appraise and develop the area, targeting the Niobrara, the J Sand and the Codell formations.
Chesapeake now holds 280,000 acres in the Denver-Julesberg Basin targeting the Niobrara formation. The company estimates that each well will have a EUR (expected ultimate recovery) of more than 500,000 barrels.
Samson Oil & Gas has oil and gas operations in Wyoming, North Dakota, New Mexico, and Texas.
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