White Star to add 49,000 acres in Midcontinent in three deals

White Star Petroleum LLC, Oklahoma City, has acquired 30,500 net acres in the Midcontinent region in two separate deals with Double Eagle Energy Oklahoma LLC, a unit of Fort Worth-based Double Eagle Development LLC, and the equity holders of Oklahoma City-based Lighthouse Oil & Gas LP.

White Star Petroleum LLC, Oklahoma City, has acquired 30,500 net acres in the Midcontinent region in two separate deals with Double Eagle Energy Oklahoma LLC, a unit of Fort Worth-based Double Eagle Development LLC, and the equity holders of Oklahoma City-based Lighthouse Oil & Gas LP.

White Star also has agreed to buy 18,500 net acres in central-northern Oklahoma from Sundance Energy Inc., Denver.

Net production from the deals in second-half 2016 averaged 2,530 boe/d. The acreage is primarily in Dewey, Garfield, Logan, Noble, and Payne counties in Oklahoma, with most of the positions held by production.

The Double Eagle deal closed Nov. 30, 2016, and included 12,000 net acres. White Star says the assets supplement its large Mississippian Lime and Woodford shale position in central-northern Oklahoma (OGJ Online, Apr. 20, 2016). Second-half 2016 average net production on the acreage was 350 boe/d.

The deal with Lighthouse closed Mar. 14 and included 18,500 net acres, extending the company’s footprint into the Anadarko basin in western Oklahoma. The acreage is primarily in Dewey County and includes development targets in the Cleveland, Tonkawa, and Cottage Grove formations. Second-half 2016 average net production on the acreage was 1,300 boe/d.

The Sundance Energy deal, expected to close in the second quarter, will include operated and nonoperated producing wells in Garfield, Logan, Noble, and Payne counties. Second-half 2016 average net production on the acreage was 880 boe/d.

White Star also has amended its senior secured, reserves-based revolving credit facility to increase the borrowing base to $285 million from $230 million with commitments from an expanded lender group.

Formerly a unit of American Energy Partners LP, White Star was previously known as American Energy-Woodford LLC.

Contact Matt Zborowski at matthewz@ogjonline.com.

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