Empire Petroleum Corporation Announces Acquisition of Oil and Gas Assets and $5 Million Credit Facility with CrossFirst Bank
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Completes Exodus Acquisition
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Completes Cardinal Acquisition
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Credit Facility Established with CrossFirst Bank
Empire Petroleum Corporation (“Empire”) (OTCQB: EMPR) announced today
that it has acquired operated producing oil and gas assets located in
St. Landry and Beauregard Parishes in Louisiana through its wholly owned
subsidiary, Empire Louisiana, LLC (the “Company”). The assets were
acquired from Cardinal Exploration and Production Company and Exodus
Energy, Inc. in transactions that have been previously reported by
Empire in its filings with the Securities and Exchange Commission. In
connection with financing for the acquisitions, the Company entered into
a $5,000,000 senior revolver loan agreement with CrossFirst Bank located
in Tulsa, Oklahoma and completed a private placement of units consisting
of common stock and warrants to Puckett Land Company of Denver, Colorado.
The acquired producing assets are comprised of oil and gas wells with
predictable, low decline production profiles, low risk workover
opportunities, undeveloped new drilling opportunities and other
potential operating and production enhancements to improve unit
operating costs and improve existing margins. The properties are
currently producing approximately 70 BOEPD (Barrels of Oil Equivalent
per Day) net to the Company’s working interest and encompasses
approximately 1555 gross acres of leasehold. Current net operating cash
flow to the Company is approximately $75,000 per month.
Additionally, Empire announced that Chief Executive Officer Thomas
Pritchard has been elected to Empire’s Board of Directors.
“These are terrific operated assets that will provide material monthly
net cash flow to the Company. Our new operations team drilled and
managed many of these wells before joining Empire and are very familiar
with their history and cash flow generation,” stated Mike Morrisett,
President. Mr. Morrisett continued, “We are extremely pleased to work
with the experienced and professional executives at CrossFirst Bank to
secure our senior revolver loan agreement.”
CEO and new Board member, Tommy Pritchard, added, “The pipeline of
growth opportunities remains robust and we are currently evaluating deal
flow with a focus on building scale with conventional producing
properties characterized by low decline and predictable production
profile, additional drilling, in-fill and workover opportunities with a
high liquid content.”
About Empire Petroleum Corporation
Empire Petroleum Corporation is a publicly-traded, Tulsa-based oil and
gas company with producing assets in Louisiana. Management is focused on
targeted acquisitions of proved developed assets with synergies with its
existing portfolio of wells. Empire looks for assets where its
operational team can deploy rigorous field/well management techniques to
reduce unit operating costs and improve margins while optimizing
production. Empire works to create shareholder value through strong free
cash flow generation.
FORWARD-LOOKING STATEMENTS
This press release includes certain statements that may be deemed
“forward-looking statements” within the meaning of the federal
securities laws. All statements, other than statements of historical
facts that address activities, events or developments that Empire
expects, believes or anticipates will or may occur in the future are
forward-looking statements. Such statements are subject to a number of
assumptions, risks and uncertainties. Actual results may vary materially
from the forward-looking statements. For a list of certain material
risks relating to Empire, see Empire’s Form 10-K for the fiscal year
ended December 31, 2017.
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Copyright Business Wire 2018
Source: Business Wire
(October 10, 2018 - 8:53 AM EDT)
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