Franklin Mountain Energy Announces Acquisition of New Mexico Acreage and Signing of Definitive Purchase Agreement for Acreage from OneEnergy Partners Operating, LLC
Franklin Mountain Energy, LLC (“FME”), a newly-formed affiliate of
Franklin Mountain Capital, announced the acquisition of approximately
8,321 acres in Lea and Eddy Counties, New Mexico, via two separate
transactions. On September 6th, FME acquired 4,041 acres in
the Bureau of Land Management (“BLM”) New Mexico Oil and Gas Lease Sale.
On September 25th, FME announced that its affiliate had
entered into a definitive agreement with OneEnergy Partners Operating,
LLC (“OEP”) to acquire its existing operations and leasehold, totaling
approximately 4,280 net acres in Lea and Eddy Counties. Approximately
77% of the acreage is operated, with a non-operated position in Eddy
County. OEP is a portfolio company of Carnelian Energy Capital, a
Houston-based energy investment firm.
Paul Foster, Chairman of FME, commented, “We are very excited about
these acquisitions and the start of FME’s footprint in the Delaware
Basin. The combined acreage from these two acquisitions has made FME the
largest private contiguous acreage holder across two of Lea County’s
geologically-rich townships with a net revenue interest of 87.5% on over
half of our operated acreage. With mostly undeveloped federal acreage
and multiple geologic targets, we have hundreds of potential long
lateral drilling locations, many high-pressure oil-weighted benches to
develop, and the opportunity to utilize central facilities and
multi-well pad development. Additionally, we see further opportunities
to unlock value through joint ventures and midstream opportunities.”
The OEP acquisition is expected to close by the end of October. At that
time, FME will assume control of all OEP producing assets, which include
four wells located in Lea County. FME will have 28 permits approved or
in process, representing thirteen proration units across five different
geologic targets: 1st Bone Spring, 3rd Bone Spring, Wolfcamp XY,
Wolfcamp A and Wolfcamp B.
The BLM acreage acquisition was funded with cash and the OEP acquisition
will also be funded with cash. FME plans to establish a more permanent
capital structure to fund its ongoing drilling program and provide the
necessary working capital.
RBC Capital Markets, LLC acted as exclusive financial advisor and
Pillsbury Winthrop Shaw Pittman LLP acted as counsel to Franklin
Mountain Energy for the OEP acquisition.
About Franklin Mountain Energy
Franklin Mountain Energy, LLC (“FME”) is an El Paso, Texas-based,
private company focused on investments and operations in the upstream
and midstream sectors of the energy industry. With a primary focus on
the Permian Basin, FME seeks to acquire assets of value and profitable
companies that have potential for improvement and growth. FME is 100%
owned by its Principals.
For additional information: http://franklinmountainenergy.com
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Copyright Business Wire 2018
Source: Business Wire
(September 26, 2018 - 3:30 PM EDT)
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