Contango Oil & Gas Company said Sept. 27 it has entered into an asset purchase agreement to acquire the assets of White Star Petroleum LLC and certain affiliates as a part of the White Star Chapter 11 bankruptcy, 363 sales process.
UPDATE:
Contango Outbids Mach Resources For Oklahoma’s White Star
The asset purchase agreement provides that Contango will acquire approximately 15 Mboe/d of production, approximately 20 MMboe of PDP reserves as of the July 1 effective date, and 315,000 net acres in Oklahoma split into the three operating districts noted below, from White Star for a total purchase price of $132.5 million.
White Star’s production is liquids weighted at 63% oil and NGLs, and the acreage is 80% held-by-production. Approximately 65% of the wells are operated by White Star and are mature fields with strong cash flow and significant development potential from PDNP and PUD opportunities. The White Star assets also include integrated gathering and saltwater disposal systems, which reduces lease operating expenses and adds third party cash flow.
The transaction is expected to close in the fourth quarter of 2019, and the effective date of the transaction will be July 1, 2019. After adjustment for normal operations during the period between the effective date and the closing date, and other normal and customary closing adjustments, the total consideration to be paid in cash at closing is estimated to be less than $100 million.
The closing of the transaction is subject to customary conditions, due diligence, confirmation of title, finalization of documentation, and entry of the bankruptcy court order approving the sale; however, closing is not conditioned upon satisfaction of any financing contingency.
Haynes and Boone, LLP is representing Contango in its acquisition of the White Star assets.
Recommended Reading
E&P Highlights: Aug. 5, 2024
2024-08-05 - Here’s a roundup of the latest E&P headlines, including new oil discoveries and an implementation of AI technology in operations offshore United Arab Emirates.
E&P Highlights: Aug. 26, 2024
2024-08-26 - Here’s a roundup of the latest E&P headlines, with Ovintiv considering selling its Uinta assets and drilling operations beginning at the Anchois project offshore Morocco.
Shell Offshore Takes FID on Waterflood Project in GoM
2024-08-14 - Shell Offshore’s waterflood secondary recovery process involves injecting water into the reservoir formation to extract oil.
E&P Highlights: Sep. 2, 2024
2024-09-03 - Here's a roundup of the latest E&P headlines, with Valeura increasing production at their Nong Yao C development and Oceaneering securing several contracts in the U.K. North Sea.
E&P Highlights: July 15, 2024
2024-07-15 - Here’s a roundup of the latest E&P headlines, including Freeport LNG’s restart after Hurricane Beryl and ADNOC’s deployment of AI-powered tech at its offshore fields.