Panhandle Oil and Gas Inc. (NYSE: PHX) said June 17 that it closed its acquisition of some Eagle Ford assets for $80.4 million.
The transaction was first announced May 15, the company said, noting that it was funded by Panhandle’s credit facility. The assets include a 16% nonoperated working interest in a block of 11,100 gross leasehold acres (1,775 net acres), Panhandle said.
This block is HBP and “largely contiguous,” the company added. It has 63 producing wells—57 in the Eagle Ford, five in the Pearsall and one in the Buda, the company said. One well is being drilled, while there are 109 undeveloped Eagle Ford locations, Panhandle added, noting that three wells are being completed.
Oklahoma City-based Cheyenne Petroleum Co. is developing the property with one rig, Panhandle said.
In May, the assets produced about 825 barrels of oil equivalent per day, 80% of which was oil, the company said.
The assets were acquired from private sellers, the company noted.
Additionally, Panhandle said that its credit facility was increased to $200 million, with a $130 million borrowing base. The facility matures November 30, 2018, the company noted. Oklahoma City-based Panhandle Oil and Gas Inc. explores and produces domestic natural gas and oil.
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