Enterra Announces Second Closing of Oklahoma Acquisition
Enterra Energy Trust said that it has completed the second closing of its previously announced acquisition of producing assets located in Oklahoma. This closing took place on Tuesday.
With the initial Oklahoma closing in January and this closing, Enterra has added an estimated 5,000 barrels of oil equivalent per day (BOE/d) at an average purchase price of $43,900 per BOE/d. The sellers were paid $92 million in units of Enterra (5,178,792 units), $69 million in cash, and $60 million in assumption of liabilities (some of which were paid at closing).
Enterra anticipates additional related add-on closings over the next 30 days for a number of small remaining working interests in the Oklahoma properties at similar purchase prices. Once these transactions are completed, the oil and gas production mix of the acquired properties will consist of approximately 80 percent natural gas and 20 percent light oil. It will add on the order of 6,300 BOE/d to Enterra's existing production rate, bringing overall production to approximately 16,000 BOE/d.
The assets include approximately 53,000 net acres of land, of which nearly 25,000 net acres are undeveloped. As previously announced, Enterra has entered into a farmout agreement with Petroflow Energy whereby Petroflow will fund 100 percent of the drilling and completion costs on the undeveloped lands to earn a 70 percent working interest. Enterra retains a 30 percent working interest from the day the additional production generated by Petroflow's drilling activities begins.
is highly accretive and will enhance Enterra's financial strength," said Keith Conrad, Enterra's president and CEO.
addition, this acquisition is important to Enterra for a number of
reasons. First, it provides us with a new core area of operations,
which is a key element of our strategy. Second, we feel there is
significant upside potential to be developed beyond the initial proven
reserves we purchased. Third, we are very excited to add to the
Enterra family, Kim Booth, the chief operating officer of Altex Energy
Corporation, and her team, who have been developing and operating
these assets for the past several years."
- Enterra's Oklahoma Drilling Improves Hunton Resource Play (Mar 11)
- Enterra Announces Second Closing of Oklahoma Acquisition (Mar 23)
Company: Enterra Energy Trust more info
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Company: Petroflow Energy more info
- Petroflow Delisted from NYSE (Jun 04)
- Petroflow Energy Notes Reserve Changes (Mar 17)
- Petroflow Updates on G&A Reduction Plan (Mar 05)