Asset A&D

BCE-Mach III Closes Acquisitions of Alta Mesa Assets in Oklahoma

By Shriya Bhargava
April 16, 2020
a minute read
Oil Derrick

BCE-Mach III LLC, a partnership between Bayou City Energy Management LLC (BCE) and Mach Resources LLC, has closed its acquisitions of both the upstream assets of Alta Mesa Holdings LP (AMH) and the midstream assets of Kingfisher Midstream LLC (KFM) in Oklahoma. AMH and KFH are both subsidiaries of Alta Mesa Resources Inc.

In late January this year, the partnership executed a Purchase and Sale Agreement with Alta Mesa Resources Inc. to acquire substantially all of the upstream assets of AMH for a total consideration of approximately US$225 million. Concurrently, BCE-Mach III also entered into an agreement with Alta Mesa Resources to acquire all of the midstream assets of KFM for a total consideration of approximately US$85 million. Subsequently, in light of deterioration in market conditions since the original agreement was signed, the parties agreed to a revised combined consideration of US$220 million for the sale of the upstream and midstream assets.

The AMH assets include around 130,000 net acres of STACK play properties located primarily in Kingfisher and Major Counties, with interests in more than 900 operated wells. The KFM assets include a gas processing capacity of 350 million cubic feet per day, 453 miles of gas gathering pipeline, 157,000 barrels per day of produced water system capacity, 224 miles of water disposal pipeline, 108 miles of oil gathering pipeline, and 50,000 barrels of oil storage capacity.

The acquisitions represent the first acquisitions in BCE-Mach III, and the sixth and seventh acquisitions by partnerships between BCE and Mach Resources since 2018. With these closings, on a combined basis, the BCE Mach partnerships will have net daily production of ~58,000 barrels of oil equivalent per day from interests in over 5,700 wells and ~500,000 net acres across the U.S. Mid-Continent.

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