Magnolia Petroleum Co., a Dallas-based partnership of Burnett Petroleum Co. and private-equity firm CIC Partners, has purchased the assets of Famcor Oil Inc., a Houston based oil and natural gas E&P.
The purchase includes 70 operated wells in San Jacinto, Liberty, Montgomery and Polk counties, Texas. The deal’s price was not disclosed.
As of March, Famcor had gross operated production of 1,057 barrels of oil equivalent per day (boe/d) of which 72% was oil. from multiple formations including the Cockfield, Yegua and Wilcox, according to TGS data. Two-thirds of the wells and more than half of the production are in Polk County.
Arcadia Operating LLC acquired a minority interest and will oversee all operations.
Magnolia Petroleum was formed in 2012 to acquire operated Gulf Coast properties. Burnett Petroleum and affiliates own stakes in 425 plus producing wells in Texas, Arkansas, Louisiana, New Mexico, Mississippi, and Oklahoma with plans in place to have an active Exploration and Development Program in Kansas.
The acquired assets line up well for Magnolia Petroleum’s ambitions and scope of operations in the region, said Kyle Burnett, CEO and president.
The assets represent “a step towards the significant growth that [they] hope to achieve in the following months,” Burnett said.
Burnett said both Magnolia and Burnett Petroleum intend to continue efforts to acquire quality assets located in the U.S. Lower 48 that insure increased value for their companies and partners while expanding their operating footprint within their Areas of Focus