BCM Energy Partners Inc. (OTC: BCME), through its subsidiary, BCM Energy Texas LLC, has signed a purchase and sale agreement to acquire leases, wellbores and existing production in East Texas from subsidiaries of New Times Energy Corp. for US $2.8 million.
Closing is expected by late February 2013, whereby BCME will pay $300,000 cash and $2.5 million in the form of a convertible note, strike price of $2.90, in exchange for 22 primary leases including 42 wells and related equipment of which 10 are producing 14 barrels of oil per day. Total reserves are 187 thousands of barrels, a PV10 value of some $2.8 million, which BCME expects to be able to increase through new engineering and geological studies. Additionally, BCME thinks that EOR techniques can further improve the value of this acquisition.
The East Texas field is located in the East Texas Woodbine, Quitman, SE and Nova fields within the North Eastern region of Texas. The East Texas field was discovered in the 1930s and covers 140,000 acres and parts of five counties. The property contains 30,340 historic and active oil wells. The primary productive geologic unit is the Woodbine formation.
In August 2012, BCME acquired assets in North Louisiana from a subsidiary of New Times Energy in exchange for some US $2.7 million. Total consideration paid was $405,000 cash and some $2.3 million convertible notes, strike price of $2.90 per share.
BCME currently maintains a pipeline of acquisitions representing over $100 million in proven and probable reserves within known oil and gas reservoirs. The company also expects to continue to acquire assets similar to University and Caddo in the months ahead in an effort to increase production and BCME’s portfolio of assets.
Headquartered in Houston, BCM Energy Partners acquires distressed oil and gas assets with the intent to build a portfolio of proven reserves associated with producing wells.