In conjunction with the extension of its current credit facility to fund the Foreman Butte acquisition, Samson Oil & Gas Ltd. (ASX: SSN; NYSE MKT: SSN) has entered into new hedging arrangements. Approximately 75% of total current production including the acquisition has been hedged from May 2016 to April 2018. Additional hedges will be put in place as #productionincreases.
The counter party to the hedges is BP, Samson’s previous hedge counter party. The hedges were put in place on March 30. Samson has deferred premiums of $0.5 million with respect to this hedge program. The net value, after deferred premiums of the #hedge portfolio at April 4 was approximately $0.8 million. The hedge program was designed to protect the acquisition price of the Foreman Butte project and has a floor of around $41 per barrel.
Together with the company’s hedging advisors, #Samson will continue to monitor the #oilmarkets with a view to trading out of these hedge positions or reducing the deferred premiums as the market dictates.
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