Harvest Oil & Gas Corp. will evaluate and undertake a process to wind-up the company and return capital to shareholders following the close of the sale of its Appalachian basin assets—substantially all of its remaining oil and gas assets—to OWS Acquisition Co LLC. The $21.895-million deal closed Oct. 23 with an effective date of July 1.
The Appalachian basin assets have average production of 27 MMcfed with estimated proved reserves as of Dec. 31, 2019, using SEC prices, of 99.6 bcfe (34% crude oil, 63% natural gas, and 3% natural gas liquids).
The transaction was funded with a two-tranche senior secured seller note held by EV Properties LP, a wholly-owned subsidiary of Harvest. A working capital reserve was funded with an equity capital contribution from affiliates of OWS.