![Formation Minerals Acquires Haynesville Shale Interests](/sites/default/files/styles/hart_news_article_image_640/public/image/2024/07/formation-minerals-acquires-haynesville-shale-interests.jpg?itok=z8qvF7G3)
(Source: Shutterstock.com)
Minerals and royalties company Formation Minerals Inc. has entered into a purchase and sale agreement with a private seller to acquire producing mineral interests in the Haynesville Shale.
The assets, in Bienville Parish, Louisiana, currently have three producing oil wells and operated by Aethon Energy Management LLC, which is testing 2-mile to 3-mile laterals for the wells. The asset. Formation said it paid $220,000 in cash for the interests.
“The wells are in an excellent area that are just out of the decline curve with stable monthly production and with the upside of more wells to be drilled on the acreage,” Scott Cox, Formation’s president and CEO, said in the company’s June 27 press release. “We have great confidence both in Aethon as an operator and in these assets, and we look forward to jointly benefiting as they continue to operate and develop the area.”
Pre-permits have been filed for six to nine more oil wells on the property.
Formation is entitled to the cash flow from the property’s oil and gas production starting July 1, under the agreement.
The company said it expects to close on the acquisition July 26 following the satisfaction of customary closing conditions. Formation is working to secure the financing needed to complete the acquisition.
“We have been and continue to be diligent in buying properties at the right price and in the right areas, thus we believe the company and its investors will reap the benefits of the rise in commodity pricing, as well as the continued development of our acreage,” Cox said.
Recommended Reading
From South Texas to the World: International E&Ps Drill Deep in the Eagle Ford
2024-06-20 - While U.S. E&Ps squabble for pieces of the Permian Basin, international energy giants are all-in on the Eagle Ford Shale in South Texas.
Enverus: 1Q Upstream Deals Hit $51B, but Consolidation is Slowing
2024-04-23 - Oil and gas dealmaking continued at a high clip in the first quarter, especially in the Permian Basin. But a thinning list of potential takeout targets, and an invigorated Federal Trade Commission, are chilling the red-hot M&A market.
Kimmeridge Exits SilverBow Proxy Fight, Takes Credit for $2.1B Crescent Deal
2024-05-22 - Kimmeridge will withdraw from a proxy fight with SilverBow Resources in light of a $2.1 billion offer by Crescent Energy for the Eagle Ford Shale E&P.
Permian To Drive Two-thirds of US Oil Output Growth Through '25 – EIA
2024-06-12 - The Permian Basin will drive U.S. oil production growth for the foreseeable future, according to the U.S. Energy Information Administration. But Permian associated gas growth continues to pressure the natural gas industry.
Decoding the Delaware: How E&Ps Are Unlocking the Future
2024-05-01 - The basin is deeper, gassier, more geologically complex and more remote than the Midland Basin to the east. But the Delaware is too sweet of a prize to pass up for many of the nation’s top oil and gas producers.