Black Stone Snaps Up Private Co, Working Interests in 5,700 Wells
Black Stone has completed the acquisition of a privately held company owning working interests in over 5,700 wells throughout Oklahoma, Texas, Louisiana, New Mexico and other states. The purchase price was $150 million. Several of Black Stone's investment affiliates, including Black Stone Acquisition Partners III, L.P., joined in the acquisition, which closed on January 9th.
Black Stone estimates that the acquired interests represent proved reserves of 88.9 Billion cubic feet of gas or gas equivalents, with current production of approximately 25 MM cubic feet per day. In addition, the company anticipates significant and continued development drilling on as many as 1,700 probable and possible locations.
"This acquisition is an excellent addition to our portfolio of properties," said Hallie A. Vanderhider, Black Stone's President and Chief Operating Officer. "The properties are incredibly diversified, with stable production profiles and low finding and development costs. That bodes well for future development drilling." She added that Black Stone welcomed the exposure to strong operating partners in some of the most economic natural gas plays in the lower forty-eight states.
Thomas L. Carter, Jr., Black Stone's Chairman and Chief Executive, noted that the company was well-positioned to respond quickly to attractive investment opportunities in the current credit-constrained environment, thanks to funding commitments from the investors in Black Stone Acquisition Partners III, available bank lines, and a group of long standing co-investors. "As this transaction again shows, we have consistently demonstrated our ability over the years to close and to close quickly," Carter said. "We stand ready to do more in the future -- and to providing strong returns for our partners."