Contango Oil & Gas Company said Sept. 27 it has entered into an asset purchase agreement to acquire the assets of White Star Petroleum LLC and certain affiliates as a part of the White Star Chapter 11 bankruptcy, 363 sales process.
UPDATE:
Contango Outbids Mach Resources For Oklahoma’s White Star
The asset purchase agreement provides that Contango will acquire approximately 15 Mboe/d of production, approximately 20 MMboe of PDP reserves as of the July 1 effective date, and 315,000 net acres in Oklahoma split into the three operating districts noted below, from White Star for a total purchase price of $132.5 million.
White Star’s production is liquids weighted at 63% oil and NGLs, and the acreage is 80% held-by-production. Approximately 65% of the wells are operated by White Star and are mature fields with strong cash flow and significant development potential from PDNP and PUD opportunities. The White Star assets also include integrated gathering and saltwater disposal systems, which reduces lease operating expenses and adds third party cash flow.
The transaction is expected to close in the fourth quarter of 2019, and the effective date of the transaction will be July 1, 2019. After adjustment for normal operations during the period between the effective date and the closing date, and other normal and customary closing adjustments, the total consideration to be paid in cash at closing is estimated to be less than $100 million.
The closing of the transaction is subject to customary conditions, due diligence, confirmation of title, finalization of documentation, and entry of the bankruptcy court order approving the sale; however, closing is not conditioned upon satisfaction of any financing contingency.
Haynes and Boone, LLP is representing Contango in its acquisition of the White Star assets.
Recommended Reading
CNOOC Makes 100 MMton Oilfield Discovery in Bohai Sea
2024-03-18 - CNOOC said the Qinhuangdao 27-3 oilfield has been tested to produce approximately 742 bbl/d of oil from a single well.
TPH: Lower 48 to Shed Rigs Through 3Q Before Gas Plays Rebound
2024-03-13 - TPH&Co. analysis shows the Permian Basin will lose rigs near term, but as activity in gassy plays ticks up later this year, the Permian may be headed towards muted activity into 2025.
Proven Volumes at Aramco’s Jafurah Field Jump on New Booking Approach
2024-02-27 - Aramco’s addition of 15 Tcf of gas and 2 Bbbl of condensate brings Jafurah’s proven reserves up to 229 Tcf of gas and 75 Bbbl of condensate.
Well Logging Could Get a Makeover
2024-02-27 - Aramco’s KASHF robot, expected to deploy in 2025, will be able to operate in both vertical and horizontal segments of wellbores.
Shell Brings Deepwater Rydberg Subsea Tieback Onstream
2024-02-23 - The two-well Gulf of Mexico development will send 16,000 boe/d at peak rates to the Appomattox production semisubmersible.