In this photo, an oil pump field in New Mexico can be seen. Empire Petroleum has closed on a $6.7 million acquisition of COERT Holdings 1 LLC’s interests in a trio of assets owned by Empire and located in New Mexico. (Source: Shutterstock.com)
Empire Petroleum has closed on the acquisition of COERT Holdings 1 LLC’s interests in the three assets owned by Empire and located in New Mexico, the company said on Aug. 10.
The three assets in Lea County are:
- Eunice Monument South Unit A
- Eunice Monument South Unit B
- Arrowhead Grayburg Unit
The purchase price of about $6.7 million includes $5 million in cash by EEF Acquisition Co. LLC, which is a wholly owned subsidiary of Empire’s largest shareholder, Energy Evolution Master Fund Ltd.
EEF Acquisition Co. has been assigned an undivided 90% ownership interest in the assets. Empire has been granted a three-year option to purchase the interests for about $5 million.
“Since we acquired our New Mexico assets from XTO in May 2021, we have evaluated opportunities to increase our ownership position through the purchase of non-operating interests,” said Mike Morrisett, president and CEO of Empire, in a press release. “We appreciate the support of EEF in the funding of the Transaction with COERT. This structure provides Empire with additional flexibility to accelerate our targeted ongoing and future asset development programs designed to strategically grow the business and build near and long-term value for our shareholders.”
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