Page 14 - NorthAmOil Week 16

NorthAmOil
NEWS IN BRIEF
NorthAmOil
UPSTREAM
Cimarex announces further reduction to 2020 capital plans; curtails 30% of May volumes
Cimarex Energy today announced that, due to the continued weakness in oil prices, it now expects a 55-60% reduction in its 2020 capital investment programme from its original guidance of $1.25-1.35bn.
The company has deferred completion activities and will drop all but one drilling rig in early May.
Cimarex chairman, president and CEO, Tom Jorden, said: “The pressure on oil prices resulting from the sudden and severe drop
in demand, has caused us to defer activity
in the Delaware Basin, further reducing our capital investment in 2020. Cimarex retains the flexibility to adjust our investment in the second half of 2020 as conditions change. Our balance sheet continues to be our focus and allows us to maintain a long-term perspective during this unprecedented time.”
Cimarex also announced that is has curtailed approximately 30% of its volumes for the month of May due to weakness in realised prices.
The company plans to provide a more detailed update as part of its first quarter earnings release on May 6.
CIMAREX ENERGY, April 15, 2020
Kimbell Royalty Partners
closes mineral and royalty
acquisition from Springbok
Kimbell Royalty Partners today announced
that it has closed the previously announced purchase of the mineral and royalty interests held by Dallas-based Springbok Energy Partners (SEP I) and Springbok Energy Partners II (SEP II and, together with
SEP I, Springbok) for a purchase price of approximately $123.1mn (the “Acquisition”) funded by a combination of approximately $95mn in cash and approximately 2.2mn common units of Kimbell and approximately 2.5mn common units of Kimbell Royalty Operating. Kimbell is entitled to the cash flow from production attributable to the acquisition beginning on and after October 1, 2019. Revenues and certain other operating statistics under generally accepted accounting principles (GAAP) will be recorded for the acquisition beginning on the closing date
of April 17, 2020. As of March 31, 2020, the acreage acquired in the acquisition had over 90 operators on 2,160 net royalty acres across core areas of the Delaware Basin, DJ Basin, Haynesville, STACK, Eagle Ford and other leading basins. In addition, for Q1 2020, Kimbell estimates that the Springbok assets produced 2,586 boe/d (56% natural gas, 34% oil and 10% natural gas liquids) (6:1), an organic production growth increase of 2% from October 1, 2019.
KIMBELL ROYALTY PARTNERS, April 20, 2020
BCE-Mach III closes
acquisitions from Alta Mesa
Holdings and Kingfisher
Midstream
On April, 9, 2020, BCE-Mach III closed the acquisitions of both the upstream assets of Alta Mesa Holdings, and its subsidiaries (AMH) and the midstream assets of Kingfisher Midstream and its subsidiaries (KFM), which are principally located in
Kingfisher County, Oklahoma.
The acquisitions of AMH and KFM
represent the first acquisitions in the newly formed BCE-Mach III LLC and the sixth and seventh acquisitions by partnerships between Bayou City Energy Management (BCE) and Mach Resources (Mach) since 2018. With these closings, on a combined basis, the BCE-Mach partnerships will have net daily production of ~58,000 boepd, interests in over 5,700 wells and ~500,000 net acres across the Mid-Continent.
BCE-MACH III, April 16, 2020
Empire Petroleum
Corporation announces
acquisition of Texas oil and
gas assets
Empire Petroleum Corporation announced today that it has acquired producing oil and gas assets and related midstream assets located in Houston, Madison, and Leon Counties in Texas through its wholly owned subsidiary, Empire Texas. The assets were acquired
from Pardus Oil & Gas, LLC and Pardus Oil & Gas Operating GP, in a transaction that has been previously reported by Empire in its filings with the Securities and Exchange Commission.
In connection with the acquisition of the Seller’s assets, Empire Texas entered into a contingency value payment (CVP) with the sellers in lieu of a closing cash payment. The quarterly CVP is based upon incremental oil production over a certain minimum level of daily average production from the Sellers’ assets, and an average realised oil price of $40 or more per barrel of oil through December 31, 2022.
The acquired producing assets are comprised of 139 gross oil and gas wells with multiple stacked-pay formations in north east Eagle Ford and encompasses approximately 30,397 net acres of leasehold, of which approximately 18,000 net acres comprise
the Ft. Trinidad field. The properties are characterised by approximately 91% working interest and 83% net revenue interests, and have been recently producing over 400 boepd (barrels of oil equivalent per day) primarily from the Woodbine, Buda, Georgetown,
and Edwards formations. Empire Texas
will operate the wells and initially utilise a transition services agreement with the Sellers’ highly qualified existing team.
In addition, Empire Texas acquired related midstream assets at Ft. Trinidad which consists of approximately 77 miles of
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Week 16 23•April•2020