BCE-Mach III LLC, a partnership of Houston private equity firm Bayou City Energy Management LLC (BCE) and Mach Resources LLC, has executed agreements to acquire substantially all of the upstream oil and gas assets of Alta Mesa Holdings LP and its subsidiaries, and the midstream assets of Kingfisher Midstream LLC and its subsidiaries (KFM) as part of the sellers’ Chapter 11 bankruptcies and associated 363 sale processes.
When Alta Mesa Resources Inc., Houston, filed for bankruptcy in September 2019, the action didn’t affect its midstream affiliate, Kingfisher Midstream LLC. However, the oil and gas pipeline and storage subsidiary filed for chapter 11 with the plan of pursuing a joint bankruptcy sale on Jan. 13 (OGJ Online, Sept. 19, 2019).
With the agreements, BCE-Mach III will acquire 30,000 boe/d of production (67% liquids), 72 MMboe of proved reserves, more than 900 operated wells, and 130,000 net acres (90% HBP) from AMH as well as gas processing capacity of 350 MMcf/d, 453 miles of gas gathering pipeline, 157 Mbw/d produced water system capacity, 224 miles of water disposal pipeline, 108 miles of oil gathering pipeline, and 50,000 bbl oil storage capacity from KFM for $320 million with a Jan. 1 effective date.
The acquisition is the sixth by partnerships between BCE and Mach. Following closing, expected in February subject to customary conditions, on a combined basis, the BCE-Mach partnerships will have net daily production of 58,000 boe/d, interests in over 5,700 wells, and 500,000 net acres across the Mid-Continent.