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
Surge Closes on Divestment of Alberta Non-Core Gas Assets
2024-12-20 - Surge Energy said it has focused on developing its core Sparky and southeast Saskatchewan crude oil assets, leaving the Alberta non-core assets undercapitalized.
Logan Energy Closes Gran Tierra Joint Venture Acquisition
2024-12-18 - Logan Energy Corp. paid approximately $37 million for 50% working interests in Gran Tierra’s Simonette Montney assets and will assume operatorship.
Crescent Energy Closes $905MM Acquisition in Central Eagle Ford
2025-01-31 - Crescent Energy’s cash-and-stock acquisition of Carnelian Energy Capital Management-backed Ridgemar Energy includes potential contingency payments of up to $170 million through 2027.
Diamondback Closes TRP Acreage Swap for Midland Assets
2025-02-25 - Diamondback Energy added southern Midland Basin locations through an acreage swap with TRP Energy.
Gevo Completes $210MM Red Trail Assets Deal for Ethanol Plant
2025-02-05 - Gevo has renamed an ethanol production plant and CCS assets acquired from Red Trail Energy as “Net-Zero North.”