AEG Affiliated Energy Group’s Working Interest in U.S. Oil Project Yields 200,000 Barrels of Oil Thus Far
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AEG
Affiliated Energy Group Louisiana oil project has produced
200,000 barrels of oil to date
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Project focuses almost entirely on oil rather than natural gas
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Project’s first well came online April 2015, at initial rate of 670
BOPD plus 1500 MCF/Day
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May look into technologies to eventually determine whether to frack an
additional zone above present objective
AEG
Affiliated Energy Group announced today that its initial well has
been completed and came on line in April 2015, having since produced
close to 200,000 barrels of light sweet crude, plus a half BCF of
natural gas. Sometimes referred to as Louisiana Light Sweet, the oil
earns a premium to WTI. In October 2013, AEG announced that it and its
affiliates acquired a ten percent working interest in a conventional oil
project in Louisiana.
The project continues to be focused almost entirely on oil rather than
natural gas with present objectives near 13,000 feet. Pursuant to the
initial test report, the well came online in April 2015 at an initial
test (flowback) rate of 670 Barrels of Oil per Day plus 1500 MCF per
Day, with no water.
“When the time comes, we’ll determine whether the operator will
recomplete or test some potentially separate zones near this main
objective,” said Chad
Price, EVP of AEG’s Commercial Energy Division. “AEG is also
interested in further evaluating an opportunity related to a ‘tight’
shale zone above the main objective when we’re done producing other
potentially productive lower zones. Although, we’ll defer to the present
operator.”
“We envision and are evaluating investments and acquisitions of
additional conventional oil exploration projects, many of which we
believe are undervalued and underexplored due to the present emphasis on
certain shale projects,” said Rob S. Potosky, Esq.
In more downstream activities, AEG’s team recently completed a $10MM+
credit facility for a New York based retail energy and gas client. The
company also assisted with two M&A projects in the Midwestern gas and
electricity markets. This followed five mergers and acquisition deals
and/or debt financing deals specifically involving retail gas and
electricity providers over the past five years, with the parties to such
transactions headquartered across three continents.
“This initial upstream project has furthered our strategic objective to
accelerate AEG’s expansion and operations further upstream in the North
American energy markets,” said Price.
“Our working interest was acquired through a 100 percent cash investment
with the AEG Group. AEG is seeking to acquire working interests in two
additional oil exploration projects over the next 12 months.”
Additional highlights from this recently completed well include:
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Profitable production even at lower oil prices, due to it being a
conventional (non-fracked) well with no debt and no associated
interest payments
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Production receives a negotiated Louisiana Light Sweet crude premium
to WTI
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AEG’s Team is pleased with the operator and will be seeking
participation on additional opportunities with this operator
Regarding present market conditions, AEG’s team is pleased that the ban
on crude oil exports has been removed in the U.S. AEG is interested in
additional conventional and nonconventional working interest (and
production) purchase opportunities, primarily in oil relative to natural
gas.
“Generally speaking, AEG’s team prefers decreasing the choke and
production on all wells in which AEG is involved, until oil may go back
above $50,” said Potosky. “However, we defer to operators who wish to
produce below this threshold even if we do not always agree with it.”
“AEG’s team is currently reviewing other onshore and offshore oil
storage options and derivatives contracts with regard to the hedging of
such physical oil production,” said Price.
Notices and About AEG Affiliated Energy Group
THIS ANNOUNCEMENT APPEARS AS A MATTER OF RECORD ONLY AND IS NOT TO BE
CONSIDERED ANY ADVICE OR ANY TYPE OF OFFER OR SOLICITATION WITH RESPECT
TO ANY SECURITIES, COMMODITIES, REAL PROPERTY, OR ANY OTHER PROPERTY.
AEG is an energy and financial services firm headquartered in Houston,
Texas. For more information, visit www.affiliatedenergy.com.
All services that are required to be performed by a registered
broker-dealer are offered through Burch & Company, Inc., Member FINRA
& SiPC.
The AEG Group and Burch are not affiliated entities.
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