VHGI Gulf Coast Holdings LLC, a subsidiary of VHGI Holdings Inc., Lexington, Ky., (OTCBB: VHGI) and privately held, Houston-based Gulf Coast Exploitation LLC plan to acquire the Houston-based Sterling Exploration & Production Co. LLC and Yazoo Pipeline Co. LP for $4.5 million in a Chapter 7 bankruptcy sale.
The companies to be acquired have assets offshore Texas. Proved reserves are estimated at 1.2 million barrels of oil equivalent, according to a report by Netherland, Sewell & Associates.
The acquisition includes 37 wells, seven operated and two nonoperated platforms and more than 100 miles of pipeline.
Gulf Coast Exploitation will contribute $1.5 million to the purchase price, resulting in a 33% ownership of VHGI. The company will also operate the properties.
Closing is subject to approval by the U.S. Bankruptcy Court for the Southern District of Texas.
Recommended Reading
Deep Well Services, CNX Launch JV AutoSep Technologies
2024-04-25 - AutoSep Technologies, a joint venture between Deep Well Services and CNX Resources, will provide automated conventional flowback operations to the oil and gas industry.
EQT Sees Clear Path to $5B in Potential Divestments
2024-04-24 - EQT Corp. executives said that an April deal with Equinor has been a catalyst for talks with potential buyers as the company looks to shed debt for its Equitrans Midstream acquisition.
TotalEnergies, Vanguard Renewables Form RNG JV in US
2024-04-24 - Total Energies and Vanguard Renewable’s equally owned joint venture initially aims to advance 10 RNG projects into construction during the next 12 months.
Ithaca Energy to Buy Eni's UK Assets in $938MM North Sea Deal
2024-04-23 - Eni, one of Italy's biggest energy companies, will transfer its U.K. business in exchange for 38.5% of Ithaca's share capital, while the existing Ithaca Energy shareholders will own the remaining 61.5% of the combined group.
Weyerhaeuser, Lapis Energy Enter Carbon Sequestration Exploration Pact
2024-02-29 - The exploration agreement covers 187,500 acres across three states with five potential carbon sequestration sites.