Tulsa’s Empire Petroleum Corporation has announced the purchase of oil and gas assets in Louisiana.
The company’s wholly owned subsidiary, Empire Louisiana LLC reached the deal with Cardinal Exploration and Production Company and Exodus Energy, Inc. It involves the purchase of oil and gas wells in St. Landry and Beauregard Parishes in Louisiana. Both are located west of Baton Rouge.
Empire also said it entered into a $5 million senior revolver loan agreement with CrossFirst Bank in Tulsa and completed a private placement of units consisting of common stock and warrants to Puckett Land Company of Denver, Colorado.
The newly-acquired assets in Louisiana include wells that are producing about 70 barrels of oil equivalent a day on 1,555 acres of leasehold. Empire indicated the assets also include low risk workover opportunities and undeveloped new drilling opportunities. The current net operating cash flow to the company is nearly $75,000 a 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.”
Empire Petroleum Corporation is a publicly-traded, Tulsa-based oil and gas company with producing assets in Louisiana.