Evolution Petroleum has agreed to acquire non-operated oil and gas assets in the Barnett shale from TG Barnett Resources LP, a wholly owned subsidiary of Tokyo Gas Americas Ltd. for $23.25 million in cash. The properties have potential upside drilling and workover opportunities, Evolution said Mar. 30.
The asset footprint consists of 23,000 net acres held by production across 9 counties in North Texas with current net production of 22 MMcfd of natural gas and 1,300 b/d of liquids. The acreage has an average working interest of 17% with a 14% average revenue interest. Blackbeard Operating LLC, an NGP portfolio company, is operator for most of the properties. Most of the wells were completed from 2007-2010. On average, the commodity mix is 30% natural gas liquids and 70% natural gas.
Subject to purchase price adjustments and closing conditions, the deal is expected to close in April.
