New Source Energy Strikes Oklahoma's Southern Dome Field Again With $18.8 Million Acquisition

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
19MM
Description

Bought an average 54.3% WI in 23 producing wells and related undeveloped leasehold rights in the Southern Dome field.

New Source Energy Partners LP (NYSE: NSLP) announced Feb. 5 that it has acquired working interests in 23 producing wells and related undeveloped leasehold rights from CEU Paradigm LLC, an affiliate of Exelon Corp., for $18.8 million.

The properties are in the Southern Dome field located in Oklahoma County, Okla. New Source Energy, of Oklahoma City, will have an average working interest of 54.3% in the 23 wells. Three-month average production is 490 barrels of oil equivalent per day (BOE/d) with 34% oil, 15% NGL and 51% natural gas.

The company has more than 16 million acres in the Hunton Reservoir located in east-central Oklahoma. Its focus is to acquire and produce mature, long lived oil and gas properties.

The purchase price included $6.9 million paid in cash at and $11.9 million paid by delivery of 488,667 common units. The transaction closed on Jan. 31, with an effective date of Aug. 1.