(Source: Business Wire)
Samson (ASX: SSN) (NYSE AMEX: SSN) previously entered into derivative
positions with respect to its oil and natural gas production. Oil and
natural gas prices have risen significantly since these hedges were
entered into and thus the Board of Samson have determined that,
following the recently completed rights offering in the United States
and Australia capital raising, it was prudent to use some of the funds
raised to close out all of these outstanding hedge positions. On
November 13, Samson closed out these positions with a payment of
US$406,248 to Macquarie Bank Limited, the counter party to the hedge
positions.
On November 13, Samson entered into the following derivative positions,
which represents approximately 50% of current production:
Oil -- Ratio Collar priced at West Texas Intermediate
Date Call/Put Volume - barrels Price per Barrel -- USD
December 2009 -- December2011 Put 21,431 60.00
December 2009 -- December2011 Call 21,431 102.90
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Natural Gas -- Ratio Collar priced at Henry Hub
Date Call/Put Volume - mmbtu Price per MCF -- USD
December 2009 -- December2011 Put 125,149 4.75
December 2009 -- December2011 Call 125,149 6.15
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Natural Gas -- Ratio Collar priced at Colorado Interstate Gas
Date Call/Put Volume - mmbtu Price per MCF -- USD
December 2009 -- December2011 Put 440,884 4.25
December 2009 -- December2011 Call 440,884 5.80
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By using a combination of a put and a call, Samson is fixing a floor for
the commodity prices while still allowing participation in upward
movements in the commodity prices.
Samson's Ordinary Shares are traded on the Australian Securities
Exchange under the symbol "SSN." Samson's American Depository Receipts
are traded on the NYSE Amex under the symbol "SSN," and each ADR
represents 20 fully paid Ordinary Shares of Samson.
For and on behalf of the board of
SAMSON OIL & GAS LIMITED
TERRY BARR
Managing Director
A service of YellowBrix, Inc.
