Evolution Petroleum Corporation (Evolution) entered into definitive agreements to acquire non-operated oil and natural gas assets in the SCOOP and STACK plays in central Oklahoma from Red Sky Resources III LLC, Red Sky Resources IV LLC, and Coriolis Energy Partners I LLC. The combined purchase price of the acquisitions is US$43.5 million in cash, subject to customary closing adjustments, with an effective date of November 1, 2023, and an expected closing date in mid-February during the company’s third quarter of fiscal 2024. Evolution expects to fund the acquisition with cash on hand and borrowings from EPM’s revolving credit facility.
Acquisition Highlights
- Production of approximately 1550 barrels of oil equivalent per day and commodity mix of 42% oil, 15% natural gas liquids, and 43% natural gas as of the effective date.
- Approximately 230 producing wells (average working interest of ~3%) in the SCOOP and STACK plays of the Anadarko Basin in Blaine, Canadian, Carter, Custer, Dewey, Garvin, Grady, Kingfisher, McClain, and Stephens counties, Oklahoma.
- Approximately 3700 net acres in the SCOOP and STACK plays with more than 300 gross undeveloped locations, with an average working interest of approximately 3%.
- As of the effective date, there were 22 gross wells in process, 21 of which were drilled but uncompleted (DUC) to be paid through completion by the seller. As of today, 13 of these DUCs have been completed and are producing.
