Contango Oil & Gas Co., Houston, has agreed to acquire the assets of White Star Petroleum LLC and certain affiliates as a part of the White Star Chapter 11 bankruptcy, 363 sales process.
Contango will acquire 15,000 boe/d of production, 20 million boe of PDP reserves as of the July 1 effective date, and 315,000 net acres in Oklahoma split into three operating districts for $132.5 million.
Assets include 45,000 net acres in the STACK district with 36 operated wells and 135 non-operated wells; 31,800 net acres in the Anadarko district with 49 operated wells and 110 non-operated wells; and 238,000 net acres in the Cherokee district with 490 operated wells and 73 non-operated wells.
The production is liquids weighted at 63% oil and natural gas liquids, and the acreage is 80% held by production. The assets also include integrated gathering and saltwater disposal systems.
The transaction is expected to close in this year’s fourth quarter, subject to conditions. After adjustments, the total consideration to be paid in cash at closing is estimated to be less than $100 million.
