Constellation to buy Oklahoma CBM business

Constellation Energy Partners said it will become one of the Cherokee basin's largest producers when it acquires Amvest Osage, a unit of private Amvest, Charlottesville, Va.

July 13, 2007

By OGJ editors
HOUSTON, July 13 -- Constellation Energy Partners LLC, Baltimore, said it will become one of the Cherokee basin's largest producers when it acquires Amvest Osage Inc., a unit of private Amvest Corp., Charlottesville, Va.

Constellation is to pay $240 million for Amvest Osage, closing by the end of July. Constellation already owns Cherokee basin assets.

Amvest Osage averages 16 MMcfd of net gas production from 370 producing wells from 93 bcf of proved reserves as of Mar. 31 at $8.48/MMBtu (OGJ Online, Aug. 16, 2005). The seller has identified more than 1,000 more drilling and recompletion opportunities.

It has a 13-year exclusive concession from the Osage Indian Nation for CBM and shale rights on 560,000 contiguous net acres with potential for as many as 100,000 additional acres. The flexible concession agreement provides for leasing as drilling occurs.