Empire Petroleum acquires oil and gas assets in Texas from Pardus Oil & Gas
Empire Texas, a subsidiary of Tulsa-based oil and gas company Empire Petroleum, has acquired oil and gas producing assets across the Madison, Houston, and Leon Counties in Texas and associated midstream assets from Pardus Oil & Gas and Pardus Oil & Gas Operating GP.
Financial terms of the deal were not disclosed.
The producing assets acquired by Empire Petroleum consist of 139 gross oil and gas wells having various stacked-pay formations in northeast Eagle Ford, which span around 30,397 net acres of leasehold. Of this, around 18,000 net acres include the Ft. Trinidad Field.
Mike Morrisett – Empire Petroleum President said: “We believe the Ft. Trinidad Field has tremendous stacked pay potential and a significant resource base.
“In our view, these assets, including proprietary 3D seismic data and an extensive library of geological and geophysical analysis, combined with a better outlook for oil pricing coming off of the unprecedented COVID-19 slow down, will significantly expand Empire’s inventory of growth opportunities.”
According to Empire Petroleum, the acquired upstream properties are characterized by around 91% working interest and 83% net revenue interests. Recently, the properties have been producing more than 400 barrels of oil equivalent per day (BOEPD) mainly from the Woodbine, Buda, Georgetown, and Edwards formations.
The wells will be operated by Empire Texas, which will initially use a transition services agreement with the existing sellers’ team.
The midstream properties acquired from Pardus Oil & Gas Operating at Ft. Trinidad consist of around 77 miles of gathering lines, pipelines, and associated facilities and equipment. Empire Petroleum expects that the acquired midstream properties will permit it to control the marketing of the natural gas and natural gas liquids produced by the company and also in optimizing the operations of its oil production.
Tommy Pritchard – Empire Petroleum CEO said: “This acquisition continues our disciplined growth strategy to acquire, at the right price, and manage mature producing oil properties with predictable, long life production. These assets have abundant subsurface well control to enable us in the future to reduce geologic risk, and a proprietary 3D seismic survey over the substantial portion of the acquired acreage confirms natural fracturing across the field.
“The pipeline of growth opportunities for Empire remains robust and we are currently evaluating deal flow with a focus on building scale in several conventional properties.”