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Firehawk Oil and Gas LLC will buy Samson Oil and Gas Ltd.’s Foreman Butte Project in North Dakota and Montana for about $41 million, Samson said Jan. 22.

Samson’s Foreman Butte position, also known as the Home Run Field, comprises substantially all of the Australian company’s assets, according to the company press release. Samson also has U.S. offices in Denver.

In 2016, Samson reported holding 53,035 net acres in the Foreman Butte with an average operated working interest of 87%.

Samson and Firehawk, a private-equity backed company based in Dayton, Ohio, signed a non-binding letter of intent for the assets. Samson said the transaction requires the approval of its shareholders.

The transaction proceeds would go toward repaying all of Samson’s liabilities, including its hedge book. An estimated $12 million would be distributed to shareholders.

In January 2016, Samson acquired the Foreman Butte Project for $16 million and recognized a gain on the transaction of $10.8 million.

Taking allowances for capex, depreciation and the release of associated provisions for asset retirement, the company said it expects to record a profit of roughly $10 million before transactional expenses and costs.

Samson Oil & Gas Divestiture Map

Darren Barbee can be reached at dbarbee@hartenergy.com.