Jericho Oil Corp. said Aug. 8 it bought EnerVest Ltd.'s Woodford Shale and Mississippi Lime assets in Central Oklahoma for about $4 million cash.
The company's affiliate, Eagle Road Oil LLC, signed a definitive agreement with an affiliate of EnerVest to acquire operated and nonoperated producing wells and drillable leaseholds in Noble, Pawnee, Payne and Garfield counties, Okla.
Jericho said the assets' location is complementary to its existing operations in Oklahoma.
The assets include 62 operated wellbores, 19 nonoperated wellbores and 31,200 net acres (about 77% HBP). The company acquired 91% average working interest in the assets and will assume operatorship upon closing.
Average net production for the first quarter was 225 barrels of oil equivalent per day (77% liquids and 23% gas). Production is primarily from the Woodford Shale and Mississippi Lime formations.
The acquisition also includes five saltwater disposal wells tied into a 60-mile pipeline system that is 100% owned.
Jericho will fund its purchase through its newly established senior secured revolving credit facility with East West Bank, according to a press release.
The acquisition has an effective date of July 1, and is subject to customary post-closing adjustments. Eagle Road Oil is a joint venture with Jericho's private family partners, owned 50% by Jericho.
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