Tulsa’s Empire Petroleum closed this week on the acquisition of COERT Holdings 1 LLC’s interests in Empire’s three New Mexico assets.
The $6.7 million acquisition involved Eunice Monument South Unit A, Eunice Monument South Unit B and Arrowhead Graybur Unit, all located in Lea County. It adds to Unit’s current producing assets in Texas, Louisiana, North Dakota, Montana and New Mexico.
Consideration for the Transaction included a cash payment of $5.0 million by EEF Acquisition Company, LLC, an indirect wholly-owned subsidiary of Energy Evolution Master Fund, Ltd., which is Empire’s largest shareholder. In exchange for its funding of the Transaction, EEF has been assigned an undivided 90% ownership interest in the COERT assets, with Empire having a three-year option to purchase such interest at $5.0 million.
“Since we acquired our New Mexico assets from XTO in May 2021, we have evaluated opportunities to increase our ownership position through the purchase of non-operating interests,” commented Mike Morrisett, President and Chief Executive Officer of Empire.
“We appreciate the support of EEF in the funding of the Transaction with COERT. This structure provides Empire with additional flexibility to accelerate our targeted ongoing and future asset development programs designed to strategically grow the business and build near and long-term value for our shareholders.”
Empire’s acquisition of holdings two years ago in New Mexico comprised 700 gross oil, gas, and injector wells and covered an area of about 40,000 acres in the Permian leasehold.
Eunice Monument and Arrowhead Grayburg fields lie on the northwestern edge of the Permian basin’s Central Basin Platform in southeastern Lea County, about 15 miles southwest of Hobbs.
Source: press release