Diversified Energy is to buy shale land and related facilities in Cotton Valley and Haynesville in the Louisiana and Texas, respectively, from Tanos Energy Holdings III for $308m.
Concurrently, Oaktree Capital Management will co-invest in the acquisition under the joint participation agreement announced on October 5, 2020, the first participation in a Diversified Energy transaction.
Oaktree will also co-invest in the assets Diversified recently acquired from Indigo Minerals to more fully align both parties as working interest partners in assets located in the Cotton Valley/Haynesville region. Oaktree will acquire 48.75% of Diversified’s working interest in the Indigo assets for $58m, representing 50% of the previously announced net purchase price.
Diversified CEO Rusty Hutson said: “We are excited to partner with Oaktree in the Cotton Valley/Haynesville area, which I believe will be the first of many opportunities to partner in the region. Oaktree’s participation not only demonstrates the attractive nature of these acquisitions, but also affords Diversified additional liquidity and line of sight to identify and pursue opportunities while continuing to maintain a strong balance sheet.”
This agreement covers 390 operated wells and production of around 14 mboepd.
Diversified and Oaktree expect to close the transaction in mid-August 2021.
For more information visit: www.div.energy.com
Do you have any news articles you would like to submit? Please contact Tracey Sansom: tracey@tankstoragenewsamerica.com
