FieldPoint Petroleum Corp. (NYSE MKT: FPP) entered a letter of intent to purchase producing assets in Milam County, Texas, from Minerva Rockdale E&P LLC, the company said Dec. 14.
The acquisition includes current production as well as behind pipe reserves and proved undeveloped opportunities. The terms of the transaction weren't disclosed.
Phillip Roberson, FieldPoint's president and CFO, said the deal is the Austin, Texas-based company's next step in regaining compliance with the New York Stock Exchange listing requirements and Citibank loan covenants.
"It is also an important step forward to grow our production base and create shareholder value utilizing equity," Roberson added.
In October, FieldPoint entered a forbearance agreement on its loan with Citibank to extend the due date to January 2018.
FieldPoint has an exclusive 60 day right to conduct due diligence and negotiate a definitive agreement to purchase the assets from Minerva-Rockdale. If definitive agreements are ultimately reached, FieldPoint will issue a number of shares of its common stock to the sellers that will be mutually agreed upon.
Recommended Reading
CNX, Appalachia Peers Defer Completions as NatGas Prices Languish
2024-04-25 - Henry Hub blues: CNX Resources and other Appalachia producers are slashing production and deferring well completions as natural gas spot prices hover near record lows.
Chevron’s Tengiz Oil Field Operations Start Up in Kazakhstan
2024-04-25 - The final phase of Chevron’s project will produce about 260,000 bbl/d.
Rhino Taps Halliburton for Namibia Well Work
2024-04-24 - Halliburton’s deepwater integrated multi-well construction contract for a block in the Orange Basin starts later this year.
Halliburton’s Low-key M&A Strategy Remains Unchanged
2024-04-23 - Halliburton CEO Jeff Miller says expected organic growth generates more shareholder value than following consolidation trends, such as chief rival SLB’s plans to buy ChampionX.
Deepwater Roundup 2024: Americas
2024-04-23 - The final part of Hart Energy E&P’s Deepwater Roundup focuses on projects coming online in the Americas from 2023 until the end of the decade.