Evolution Petroleum has closed its acquisition of non-operated oil and gas assets in the Barnett Shale from TG Barnett Resources, for $18.2m.
Evolution acquired substantially all the assets, however a portion of the non-operated dry gas working interests were excluded because of potential title defects that the seller was unable to timely cure. Upon resolution of the potential title defects, Evolution may purchase those interests at a mutually agreed upon price.
The asset footprint consists of approximately 21,000 net acres held by production across nine counties in the Barnett Shale basin of North Texas. The acquired properties consist of approximately 50 bcf of natural gas and five mmbls of liquids producing reserves based on the seller’s December 31, 2020 Netherland Sewell reserve report using weighted average prices of $51.41/bbl for oil and $2.74/mcf for natural gas.
The asset has estimated current net production of approximately 17 mmcf/d of natural gas and 1.3 mbbls/d of liquids. After the removal of the excluded assets, which were all dry gas, the commodity mix has increased to approximately 35% natural gas liquids and 65% natural gas.
“This transaction represents another substantive step in the company’s efforts to further diversify and grow its asset base through the acquisition of primarily long-life, developed oil and gas properties, which will be supportive of the company’s dividend.” said Jason Brown, president and CEO. For more information visit: www.evolutionpetroleum.com