The company said it would use a combination of debt and equity to fund the transaction. It will borrow $21 million from Macquarie Bank, in addition to placing $18 million of shares in a capital raising that will target institutional investors and shareholders in Australia, Europe and the United States. Out of this amount, $2.7 million will be used as additional working capital, a company spokesperson said.

In January, the company announced the assets, to be purchased from US-based Stanley Energy, comprise a 21% equity in the 240-acre crestal portion of the Jonah Field and 16.6% of a gross acreage of 12,500 acres in the Lookout Wash Field. Both of these fields are currently producing net gas of 3.2 million cubic feet, which is expected to increase to 4.2 million cubic feet this year.

Samson already has a focus in the Green River Basin since it acquired Kestrel Energy, which has an extensive acreage holding in the region.

Samson managing director Terry Barr said the transaction would put the company in a strong position.

“The acquisition of these quality gas assets in one of USA’s fastest expanding gas regions when combined with the company’s existing portfolio of exploration, development and production assets is expected to result in a significant re-rating of Samson as a significant junior explorer and producer in one of the world’s best gas markets,” he said.

“The estimated combined proved and probable reserves post acquisition of the company will be 65 billion cubic feet of gas equivalent.”

Oil and gas advisory consultants Sproule Associates estimate the Jonah and Lookout Wash fields contain significant reserves. The total proven reserve has been estimated at 26 billion cubic feet of gas, with total proven, probable and possible reserves at 42 billion cubic feet.

Samson said the Jonah Field was one of the largest discoveries in recent decades in the US, having produced in excess of 1 trillion cubic feet of gas since production started in 1992. Development of this field has resulted from the application of advanced fracture stimulation techniques, the company said.

The company said a rig has been contracted to drill an infill development well at Jonah this week.

Meanwhile, the company said Lookout Wash was a relatively immature development field. As a result, most of the proved undeveloped reserves are in this field.