Privately held American Energy Partners, LP’s affiliate is closing on 14,000 net acres of leasehold primarily located in Reagan County, Texas and 1,400 BOEPD of production for $440 million, in cash and notes, according to a news release from the company. The deal will double its leasehold in the Wolfcamp Shale play.
Including the Tall City acquisition, since July 31, 2014, AEPB has or will acquire approximately 28,000 net acres, or approximately 115,000 acres on a net effective acre basis, and 49 MMBOE of proved reserves, primarily located in Reagan County, Texas, for a total purchase price of approximately $720 million.
AEPB will fund the acquisition with proceeds from its immediate parent, American Energy Permian Holdings, LLC (AEPH), who is offering $515 million of 8.0% Exchangeable Junior Subordinated Notes due 2022, the net proceeds of which are being contributed to AEPB in exchange for preferred units.
Pro forma for the acquisitions expected to be completed by year-end, AEPB estimates it will have approximately 91,000 net acres in the Wolfcamp Shale play in the Central Midland Basin, or approximately 248,000 acres on a net effective acres basis, more than 17,000 BOEPD of current production, 158 MMBOE of proved reserves and approximately 2,700 gross future well inventory.
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