Petrogas Buys Stake in Oklahoma Wells as Upstream Deal Making Increases
Oil and gas production firm Petrogas Company Inc. announced Wednesday that it has acquired a stake in four wells located in Dewey County, Oklahoma.
Two of the wells are currently producing commercial quantities of oil and gas and are operated by Vanguard of Houston and Lighthouse Oil and Gas.
"We plan to continue making acquisitions in the sector as we believe oil prices could continue going up through 2017 based on the data we are seeing," Mr Huang, CEO of Petrogas Company, said.
"Through the first two weeks of November, upstream oil and gas deal-making hit $56.7 billion, compared with $26.8 billion seen in the same period last year. Also, the US rig count jumped by 13 to 523 this week, according to oilfield-services company Baker Hughes which represents 8 weeks of consecutive rise,” he added.
Earlier this month, Petrogas announced that it had participated in a government auction by the Bureau of Land Management and successfully purchased two oil and gas leases in Washington, OH and another in Monroe, OH.
The leases are on a 10-year primary term and the company will pay 12.5 percent in royalties to the government once production begins. The total crude oil production in Ohio for 2015 was nearly 22 million barrels and the total natural gas production approximately 950 million cubic feet, mostly produced from the Utica and Marcellus shales.
This deal followed another in December which saw the company purchase a stake in four wells in Roberts County, Texas.
"We are pleased to close on this acquisition to take full advantage of the increasing oil and gas prices," Huang said at the time.
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