United Energy announced Monday the acquisition of 240,000 acres of oil and gas holdings in Oklahoma and Kansas.
The Plano, Texas based company did not disclose an acquisition price but said it included operated and non-operated oil and gas leases including 2,200 plus wells and 1,200 miles of natural gas pipelines. The holdings are in Rogers, Nowata, Osage and Washington counties in northeast Oklahoma and in Montgomery county in southeast Kansas
The announcement said the investment represents a key step in UE’s effort to invest heavily in cleaner, more abundant and reliable forms of energy like Natural Gas.
“With Natural Gas hitting $4 per mcf last Friday, July 23rd, we feel our timing is very ideal,” explained Rick Coody, COO of United Energy Corporation. UE will provide shareholder updates as it continues to evaluate the leases and their potential.
Additionally, United Energy announced it has purchased a minority ownership position in a planned oil and refined fuels storage terminal facility in Louisiana. The project, which hopes to break ground in 2022, will have an initial oil storage capacity of 6.8M barrels of oil and will serve as an important hub of oil transportation and storage to and from the Gulf of Mexico. UE has a desire to increase its involvement and investment in this space and will seriously consider it in the year ahead.
UE is currently evaluating exploration and development opportunities in North Dakota and Montana. “Our new corporate direction can be summed up in three words, Profitability, Responsibility, and Sustainability,” said Brian Guinn.
The company indicated the Monday announcement also involved a new corporation direction for the remainder of 2021 and beyond.
Over the last 12 months, UE experienced a change of control and began divesting of lesser performing, non-core assets and marginal oil producing leases. Simultaneously, UE began positioning itself to emerge from the past year as a more robust, diversified energy company.
“We haven’t seen this level of excitement in the energy industry in a long time,” stated Brian Guinn, Chairman and CEO of United Energy Corporation. “Going forward, our energy assets will be diversified under three main categories: Exploration and Production, Technology, and Oil and Fuel Storage.”
Source: Business Wire
