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In its A&D swan song, Energy 11 LP is set to close a $53 million deal in the Williston Basin March 31, bringing its total 2017 acquisitions in the Sanish Field to more than $180 million.
In early March, subsidiary Energy 11 Operating Co. LLC agreed to purchase an average 10.5% working interest in producing and nonoperated wells from Kaiser Acquisition and Development – Whiting LLC, according to U.S. Securities and Exchange Commission (SEC) filings.
Whiting Petroleum Corp. (NYSE:WLL) operates the Sanish Field assets, where it is targeting the Bakken/Three Forks.
Energy 11 was managed by Aubrey K. McClendon until his death in 2016. Subject to closing the Sanish deal Energy 11 does not plan to acquire additional oil and gas properties, according to SEC filings.
On March 23, a new entity, Energy Resources 12 LP, was launched to offer a “blind pool” investment targeting oil and gas acquisitions. David S. McKenney will serve as CEO of Energy Resources 12 and Energy 11.
Energy Resources 12 is offering up to $350 million in investments to the public and is aiming for a minimum of $25 million to operate.
In January, Energy 11 completed the purchase of 11% working interest in 216 producing wells and about 257 future development wells in the Sanish for $130 million.
Energy 11 had about 4,564 net acres under lease in Mountrail County, N.D., as of Dec. 31. The company acquired its first operating asset in December 2015 in the Sanish Field for about $159.1 million.
Energy 11, based in Fort Worth, was formed June 2013 and has since raised proceeds of about $329 million. The company had sought to up to $2 billion.
At the close of its initial sale in August 2015, Energy 11 hired McClendon’s management team to run the company until his death in a May 2016 car accident.
McClendon was never replaced since substantially all of Energy 11’s properties are either operated by Whiting or nonoperating working interest in the Sanish Field and the company has “limited ability to influence or control the operation or future development of the non-operated properties or the amount of capital expenditures that we are required to fund.”
Darren Barbee can be reached at dbarbee@hartenergy.com.
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