AUSTRALIA-listed Samson Oil and Gas has settled a legal dispute with Halliburton over the Hawk Springs project in Texas, after the US company paid Samson $725,000 in cash.
Halliburton had sought roughly US$172,000 in unpaid oil revenue attributable to its stake in the Hawk Springs project in a legal dispute dating from 5 June 2013.
Samson filed counterclaims in response to this, claiming about US$336,000 from Halliburton for an invoice for the demobilisation of a drilling rig, after Samson engaged Halliburton’s project management company to work on the Roosevelt project in Montana in 2011.
Samson also filed an amended counterclaim in September 2015, alleging that Halliburton’s selection of an inappropriate rig and an unqualified supervisor at its Spirit of America 1 well caused it to incur US$4.5 million in costs that would otherwise have been avoided.
The parties reached agreement in a mediation session held on 10 March 2016, with Halliburton also removing its request for Samson to release the US$172,000 held in suspense from the jointly owned Defender well in Goshen County, Wyoming.
The news came as Samson received notification that its stockholders equity had fallen below the required level to retain its listing on the New York Stock Exchange (NYSE) on 31 December 2015.
Samson stockholders have an equity deficit of US$197,183, while they must have equity of US$2 million or more if the company has reported losses from continuing operations and/or net losses in two of its three most recent fiscal years.
Stockholders are also required to hold at least US$4 million in equity if it has reported losses from continuing operations and/or net losses in three of its four most recent fiscal years.
Samson said its plan to rectify the situation, which must be received before 13 April, would be helped by the settlement of the dispute with Halliburton.
Also helping will be Samson’s planned acquisition of new producing properties in the Williston basin across Montana and North Dakota after its primary lender agreed to extend its loan base to US$30.5 million.
“The Company is confident that, after the acquisition, it will be in a position to regain full compliance with the required level of stockholders’ equity prior to 14 September, 2017, as required by the NYSE MKT,” Samson said.