Ecoark Acquires Louisiana Assets from Rabb Resources
Texas-based Ecoark Holdings Inc. has acquired working interests in certain oil and gas mineral leases and associated assets located in Concordia Parish, Louisiana from Rabb Resources Ltd. for approximately US$3.2 million. Ecoark Holdings completed the acquisition through its wholly-owned subsidiary, White River E&P LLC.
Under the terms of the agreement, the transaction consideration consists of approximately US$1.2 million in cash and an additional US$2.0 million payable by way of issuance of Ecoark common shares.
The acquired assets are contiguous to Ecoark’s current Louisiana footprint, and include production of approximately 150 barrels of oil equivalent per day (boe/d) in and around the Blackhawk oil field.
Ferriday-based Rabb Resources is led by its founder, Claude Rabb, and is engaged in exploration and production activities in Louisiana.
“The Rabb Resources acquisition increases our daily production to approximately 400 BOPD,” said Randy May, CEO of Ecoark. “This acquisition is tremendously accretive to our footprint and expertise. We continue to expand our team, including the addition of a Downhole/Completions Engineer, formerly of Pioneer Natural Resources Company, who together with Claude and our growing operations team, further improve our expertise as we execute on our strategy,” he added.
Ecoark is engaged in oil & gas exploration, production, and drilling operations in Texas, Louisiana, and Mississippi. The company is also engaged in the provision of transportation and logistics services, as well as the procurement and financing of equipment to oilfield transportation services contractors.