Samson Oil & Gas announced it has updated its credit agreement with Mutual of Omaha Bank to increase the borrowing base of this facility to $15.5 million. The terms of the facility agreement otherwise remain unchanged, being a three- year term with an interest rate of 90 day LIBOR plus 3.75% which is approximately 3.98% currently.

This $25 million facility was initiated in January of this year with an $8 million borrowing base of which $6 million has been drawn. Debt available for immediate drawdown is now $9.5 million. Whilst these funds are available for immediate drawdown, Samson does not expect any funds to be drawn from the facility until the third quarter of 2014. These funds will be used to maintain the infill development drilling in North Stockyard and Rainbow.

The available debt facility of $9.5 million plus our existing May cash balance of $7.8 million (unaudited) means that Samson has liquidity of $17.3 million.

The additional borrowing base has been developed from the March 31st 2014 Proved Reserve report which was estimated by the Company’s independent reserve engineer to have a NPV10 of $47 million. Importantly the North Stockyard infill program has begun to develop the Three Forks and as these reserves are outside the Proven category and will therefore have a larger impact on the Proven Reserve than the prior wells which were largely Proved Undeveloped.