Australia-based Samson Oil & Gas Ltd. entered new hedging arrangements under which about 75% of total current production, including the Foreman Butte acquisition in North Dakota and Montana, was hedged from May 2016 to April 2018, the company said April 5.

Additional hedges will be put in place as production increases; the hedges were placed on March 30, designed to protect the price of the Foreman Butte acquisition with a floor of about $41 per barrel.

BP Plc is Samson’s counterparty.

Samson deferred premiums of US$0.5 million in relation to the hedge program.

Samson is currently seeking approval from Montana’s MBOGC and North Dakota’s NDIC regulatory agencies for the Foreman Butte acquisition, and submitted the transfer of operator forms to these agencies.

Following receipt of these approvals, Samson’s development program will bring 29 inactive wells back on production.

Wells that were shut in due to mechanical problems will be worked over; shut-in horizontal wells will be worked over; and proved undeveloped drilling will be carried out. Respectively, 11, 18 and 37 wells will be worked over.