Contango Oil & Gas Co. outbid Tom Ward’s Mach Resources LLC in an Oklahoma bankruptcy auction in September to win the assets of White Star Petroleum LLC, court documents of the $132.5 million deal revealed.
The acquisition is the second focused on Oklahoma by Houston-based Contango this year and, if both deals close, will gather an acreage position of more than 450,000 acres for a cost of roughly $155 million.
On Sept. 27, Contango said it entered an agreement to acquire the assets of White Star and certain affiliates as part of the Oklahoma City-based company’s Chapter 11 bankruptcy process. Formerly American Energy-Woodford LLC, White Star Petroleum was founded by the late Aubrey McClendon as an Oklahoma-focused E&P business. Previously, McClendon had co-founded Chesapeake Energy Corp. alongside Ward, who currently is heading his latest Oklahoma venture Mach Resources.