Nearly 1,800 oil and gas wells in 32 western Oklahoma counties are under new ownership of a partnership created last year in Oklahoma.
BCE-Mach II has signed a purchase and sale agreement within its new partnership with Bayou City Energy (BCE), BCE-Mach II, for the acquisition of US producing properties in Beckham, Custer, Dewey, Roger Mills and Washita Counties, Oklahoma, and Hemphill and Roberts Counties.
The name of the seller has not been disclosed by the company.
Mach Resources and BCE formed their second collaboration, BCE-Mach II, which will focus on low-risk, high return oil and gas properties with drilling inventory in the Western Anadarko Basin, covering western Oklahoma and the Texas Panhandle.
The first partnership between the companies, BCE-Mach, continues to own, operate and acquire properties in the Mississippi Lime.
Furthermore, BCE-Mach II signed a second purchase and sale agreement in a separate transaction to purchase producing properties spanning across 32 counties in Oklahoma and seven counties in Texas.
Mach CEO Tom Ward said: “Mach looks forward to continuing its partnership with BCE via BCE-Mach II with a focus on acquiring proven cashflow using low leverage as opposed to the industry standard of solely relying on growth at all costs through the drill bit.
“Within both partnerships, we will be operating nearly 1,800 wells and generating over $150m of annual cashflow with the strategy of investing 60% of cashflow to maintain a steady EBITDA and production profile.”
Both the transactions are expected to close in September, subject to customary closing conditions.
BCE founder and managing partner William McMullen said: “Upon closing these two transactions, the two BCE-Mach partnerships will have closed on five distinct transactions spanning the Mississippi Lime, STACK, MERGE, SCOOP, and Western Anadarko Basins.
“In total, these assets represent 365,000 net acres, which are 98% held-by-production, and producing 30,000 net boepd (49% liquids).”
The formation of BCE-Mach II LLC was announced in Oklahoma City in 2018 and the partnership’s focus was on acquisition opportunities of low-risk, high cash flowing oil and gas properties with drilling inventory in the Western Anadarko Basin of western Oklahoma and the Texas Panhandle.
BCE-Mach has successfully acquired multiple assets to date and is currently running three rigs, developing its asset base in the Mississippi Lime. BCE-Mach will continue being strategically acquisitive in the Mississippi Lime and continue its proven development plan throughout its asset base.
