American Energy Partners Acquires Assets In Pennsylvania and West Virginia
Pennsylvania-based diversified energy company American Energy Partners Inc. has entered into an agreement to acquire 100% of the stock and units of three unnamed oil & gas operators for a total consideration of approximately US$10.8 million. The acquisition will be funded through a mix of debt and equity.
The companies acquired collectively hold 695 net acres of oil & gas rights and associated midstream assets in Pennsylvania and West Virginia. The acreage is 100% held by production, with no associated drilling commitments or obligations. Total current proved (1P) reserves attributable to the assets are approximately 19 billion cubic feet equivalent (Bcfe), with low risk, low-cost stabilized production from 467 wells (including midstream assets) at around 1,250 million cubic feet equivalent per day (MMcfe/d). The transaction represents an increase in annualized revenue of approximately US$2 million beginning in Q3-2021, based on current strip pricing.
“This transaction furthers our commitment to acquiring steady cash flowing businesses while enhancing our ability to develop alternative green energy opportunities with the vast amount of acreage included in the package,” said Brad Domitrovitsch, CEO of American Energy Partners.
Listed on the OTC Pink Exchange, American Energy Partners is engaged in the E&P of oil and natural gas, energy education, water treatment and distribution, geotechnical consulting, and oilfield services in the United States.
The transaction is subject to customary closing conditions, and has an effective date of July 1st, 2020.