After bankruptcy, Harvest Oil sells south Texas holdings

Harvest Oil and Gas Corp., a Texas firm with operations in Oklahoma and throughout the Mid-Continent area has sold its South Texas Assets in a $135 million deal with Magnolia Oil and Gas Corporation based in Houston, Texas.

The sale also includes 4.2 million newly issued shares from Magnolia to Harvest Oi land Gas. The shares have a value of $56 million.

Harvest was previously named EV Energy Partners which emerged from Chapter 11 bankruptcy earlier this year. It had filed last April. Through restructuring, Harvest eliminated nearly $355 million in debt and accrued interest. It recently announced an amended and restated credit facility with an initial borrowing base of $325 million. harvest still has a total outstanding debt of $297 million and total liquidity of $46 million.

The two firms indicated they hope to wrap up the sale August 31.

The Harvest South Texas Assets generated nearly $25 million in revenues in the first half of 2018 with $13 million in capital expenditures. They also produced nearly 4,800 barrels of oil equivalent a day in the first half of the year.

The acquisition boosts Magnolia’s efforts in the southern part of Texas, most of it in the Eagle Ford. Harvest will continue with its primary assets in the Mid-Continent, the Barnett shale, the San Juan Basin, the Appalachian Basin and Michigan, Kansas, Louisiana, the Permian Basin and northern Louisiana.