A 140-mile natural gas pipeline owned by Red Fork Energy in Wagoner County, Oklahoma has been acquired by United Energy, a firm based in Plano, Texas. No sales price was disclosed in the announcement.
It is a second major acquisition in eastern Oklahoma for United Energy. In August, the company announced it had acquired what it called a strategic asset combination in the Cherokee Basin which is located in Northeastern Oklahoma and Southeastern Kansas.
The company purchased Entransco Energy, LLC, serving as the firm’s licensed Operator in Oklahoma and Kansas, adding 250+ Coalbed Methane Gas (CBM) wells, 32,000 acres, 118 miles of pipeline and related oil and gas assets to its portfolio.
The latest purchase, that from Red Fork Energy involves the 140 miles of transmission lines, three inches to 16 inches in size with a capacity of up to 20,000 MCFGD and comprised about 5,000 acres leasehold and 89 company-owned wells in substantial Woodford Shale development possibilities.
Closing is expected in October pending final due diligence.
“Natural Gas midstream assets are true gems in the current environment. Acquisition of the Wagoner Pipeline also opens numerous opportunities for stranded gas that hasn’t been able to capitalize on current commodity prices.” Brian Guinn, CEO of United Energy Corporation.
In addition, UNRG acquired 80 wells and 10,000 acres of CBM-producing wells from Montclair Energy – a project formerly known as ROCCS, the Rogers County Coal Seam Project.
The Entransco acquisition also included 49% ownership in an additional 200,000 acres of non-operated oil and gas leases, 2,200+ wells and 1,000+ miles of natural gas pipelines formerly owned by Constellation Energy Partners and Newfield Exploration.
UNRG forecasts 2,500+ MCFGD within Q4 and another 2,000+ MCFGD with the reactivation of the Wagoner Pipeline.
UNRG will soon be rolling out a proprietary well-pumping solution for the production of CBM wells. This innovative pump dramatically reduces operating costs of water-producing wells, eliminating the surface pump jack and many high-maintenance pumping expenses that have burdened previous operators.
“We’re on a mission. We’ll be one of the top 3 largest operators in the Cherokee Basin before year-end.” Brian Guinn
Source: PR Newswire