Benchmark Energy II LLC closed an acquisition of Anadarko Basin assets from private sellers, the company said April 17.
Benchmark Energy II, a majority owned subsidiary of publicly traded Acacia Research Corp., acquired approximately 140,000 net acres in the western Anadarko Basin from Revolution Resources II, Jones Energy and several related affiliates, according to regulatory filings.
The deal, announced in February, includes 470 operated producing wells in Oklahoma and Texas. Benchmark also picked up operated and non-operating interests across 27,000 net acres in the emerging Cherokee play.
The aggregate purchase price to the sellers was $145 million in cash. Acacia’s share of the consideration, including fees, was approximately $59.9 million.
The remaining consideration was funded through revolving credit facility borrowings and $15.25 million in contributions from other Benchmark investors, Acacia said in a filing with the U.S. Securities and Exchange Commission.
The acquired assets include liquids-rich, low-decline production of approximately 6,000 boe/d. Annualized asset-level cash flows are forecast at about $45 million.
Following the deal, Benchmark’s portfolio was balanced at approximately 60% liquids and 40% natural gas.
“We are excited to work closely with the Benchmark team as they continue to execute on their strategy of acquiring mature cash flowing properties, improving operations, maximizing production, and most importantly, returning capital,” said Acacia CEO MJ McNulty Jr.
“With this transformative acquisition now closed, we look forward to continuing to identify and acquire valuable businesses at attractive valuations and deploying disciplined operating and capital allocation methods to create value for our stockholders,” McNulty Jr. said.
Benchmark sees an opportunity to enhance the new Anadarko asset with artificial lift optimization, workovers and return-to-production projects.
The latest deal came a little over four years after Revolution Resources acquired Jones Energy Inc.’s assets in Texas and Oklahoma.
Outside of energy, Acacia acquires and operates businesses in the industrial, healthcare and mature technology sectors.
RELATED
Benchmark Buys Revolution Resources’ Anadarko Assets in $145MM Deal
Recommended Reading
Marketed: DLH Capital Four Well STACK Opportunity
2024-05-29 - DLH Capital has retained EnergyNet for the sale of a four well package STACK opportunity in Caddo and Dewey counties, Oklahoma.
Marketed: Anschutz Exploration Niobrara Shale Opportunity
2024-05-29 - Anschutz Exploration Corp. has retained EnergyNet for the sale of a Niobrara Shale opportunity in Campbell County, Wyoming.
Marketed: BKV Chelsea 214 Well Package in Marcellus Shale
2024-04-18 - BKV Chelsea has retained EnergyNet for the sale of a 214 non-operated well package in Bradford, Lycoming, Sullivan, Susquehanna, Tioga and Wyoming counties, Pennsylvania.
Marketed: Wylease Niobrara Shale Cloud Peak Opportunity
2024-04-30 - Wylease LLC has retained EnergyNet for the sale of working interest in the Niobrara Shale of Converse County, Wyoming in the Cloud Peak 3874-8-5-1NH.
Marketed: Wylease Niobrara Shale Opportunity
2024-04-30 - Wylease LLC has retained EnergyNet for the sale of working interest in the Misty Moon Lake 3874-17-20-1NH of Converse County, Wyoming.