White Star Petroleum LLC announced an A&D triple in the Midcontinent in March, saying it will add 49,000 net acres in Dewey, Garfield, Logan, Noble and Payne counties, Okla.
In three deals, White Star will expand its position in the same area where it purchased 210,000 acres from Devon Energy Corp. (NYSE: DVN) in 2016.
White Star purchased about 30,500 net acres in deals with Double Eagle Energy Oklahoma LLC and equity holders of Lighthouse Oil & Gas LP, the company said March 21. The purchase price wasn’t disclosed.
White Star also signed an agreement March 1 to buy 18,500 net acres from Australia’s Sundance Energy Inc. Sundance said it will sell the Anadarko Basin acreage for $18.5 million.
Net production from the acquisitions averaged 2,530 barrels of oil equivalent per day (boe/d) in the second half of 2016.
White Star is backed by The Energy and Minerals Group, which also backs Lighthouse Oil & Gas alongside funding from Talara Capital Management.
“These transactions signify another step in White Star’s strategic plan, positioning the company for continued growth and value creation with an expanded, diversified footprint in the Midcontinent region,” Elliot J. Chambers, White Star's CEO said. “White Star is also pleased with the strong support from existing and new lenders, indicative of White Star's bright future.”
In October, White Star raised $207.5 million from 11 investors, according to U.S. Securities and Exchange Commission (SEC) documents. The funds were not raised in connection with an acquisition, SEC documents said.
White Star closed the Double Eagle deal Nov. 30, adding about 12,000 net acres. The assets supplement the company’s Mississippian Lime and Woodford Shale position in Central Northern Oklahoma. Second-half 2016 net production averaged 350 boe/d.
In 2014 lease sales, Double Eagle paid an average of $3,283 per acres for Garvin acreage.
Double Eagle was founded by Cody Campbell and John Sellers, who in February agreed to sell Double Eagle Energy Permian LLC to Parsley Energy Inc. (NYSE: PE) for $2.8 billion.
On March 14, White Star closed the Lighthouse Oil & Gas transaction. The deal adds about 18,500 net acres to the company’s footprint into the Anadarko Basin with acreage primarily in Dewey. It includes development targets in the Cleveland, Tonkawa and Cottage Grove formations. Second-half 2016 average net production of the acreage was about 1,300 boe/d.
White Star held more than 400,000 net acres in Central Northern Oklahoma prior to its most recent deals. In 2016, the company filed about 30 permits to drill in the state, half in Payne.
In May 2016, White Star purchased 210,000 net acres from Devon for $200 million, including acreage in Payne, Lincoln, Logan and Garfield counties, Okla. In first-quarter 2016, net production from the acquired assets averaged 12,800 boe/d.
About the same time, the company also changed its name from American Energy – Woodford LLC, formerly a subsidiary of Aubrey McClendon’s American Energy Partners LP.
Baker Botts LLP was legal adviser to White Star on the Lighthouse transaction and Porter Hedges LLP was its legal adviser on the Double Eagle and Sundance acquisitions.
Darren Barbee can be reached at firstname.lastname@example.org.
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