Empire Petroleum Corporation in Tulsa announced Tuesday that it has acquired in a more than $16 million deal producing oil and gas assets and related gathering assets located in Lea County, New Mexico through its wholly owned subsidiary, Empire New Mexico LLC.
The acquisition was made from ExxonMobil Corporation’s XTO Holdings, LLC in a transaction that has been previously reported by Empire in its filings with the Securities and Exchange Commission.
The exact acquisition price was not revealed but Empire later stated that in connection with the financing of the acquisition, Empire New Mexico had entered into a $16.25 million senior secured convertible note with Energy Evolution Master Fund, Ltd. at 3.8% per annum interest.
The acquired operated assets are comprised of about 700 gross oil, gas, and injector wells and encompass approximately 40,000 net acres of Permian leasehold. The properties are characterized by high working and net revenue interests, producing approximately 1,100 net BOEPD with sixty-seven percent being oil.
The Eunice Monument and Arrowhead Grayburg fields are located on the northwestern edge of the Permian Basin’s Central Basin Platform in southeastern Lea County, New Mexico, approximately 15 miles southwest of the city of Hobbs.
“We believe the EMSU and surrounding acquired fields have a significant resource base,” stated Mike Morrisett, President of Empire Petroleum.
He said with the acquisition, Empire operates in five states with an aggregate of more than 100,000 net leasehold acres and 1,800 net BOEPD.
Empire CEO Tommy Pritchard added, “This acquisition is a terrific example of what Empire looks to manage in their assets: mature producing oil properties with predictable, long life production with significant upside potential.”
Empire Petroleum Corporation is a publicly traded, Tulsa-based oil and gas company with current producing assets in Texas, Louisiana, North Dakota, Montana and New Mexico.