Published: June 7, 2021 |

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Evolution Petroleum has entered into a definitive agreement to acquire non-operated oil and gas assets in the Barnett Shale from TG Barnett Resources, a wholly owned subsidiary of Tokyo Gas Americas. The purchase price of the transaction is $23.25 million in cash.

“We are extremely pleased to be acquiring high quality producing assets in Texas and feel the Barnett Shale fits perfectly into our portfolio of long-lived, low-decline assets. This acquisition significantly adds to our overall production and reserves, representing a material step in growing our business without adding incremental G&A expenses. There are many attributes we like about the long-life characteristics of natural gas in certain basins that have stable regulatory environments and access to premium gas markets. We have been following the Barnett and have seen significant improvement in the midstream infrastructure costs over the past 18 months,” said Jason Brown, president and CEO.

“In addition, many operators have successfully transitioned from a WAHA price basis to an East Texas or Houston Ship Channel basis which has both lowered and stabilized the differential leading to improved realized prices. These two factors along with the maturity of the basin, demonstrated by relative low production declines, makes the Barnett a complementary addition to support our long-term business strategy,” added Brown.

“The acquisition further diversifies our asset portfolio, reduces volatility risk, and improves the sustainability and support of our dividend. We have appreciated the support and patience of our shareholders during this past year and feel this is an important step in gaining both size and scale to create long-term value,” concluded Brown.

Asset Details

The asset footprint consists of approximately 23,000 net acres held by production across 9 counties in the Barnett Shale basin of North Texas. The acreage has an average WI of 17 percent with a 14 percent average RI. Blackbeard Operating, an NGP portfolio company, is the current operator for the majority of the properties. Most of the wells were completed from 2007-2010, which led to the current low decline production profile. On average, the commodity mix is 30 percent natural gas liquids and 70 percent natural gas. These properties have potential upside drilling and workover opportunities that Evolution could participate in to support current production.

About Evolution Petroleum
Evolution Petroleum Corporation is an oil and gas company focused on delivering a sustainable dividend yield to its shareholders through the ownership, management, and development of producing oil and gas properties onshore in the United States. The company’s long-term goal is to build a diversified portfolio of oil and gas assets primarily through acquisition, while seeking opportunities to maintain and increase production through selective development, production enhancement and other exploitation efforts on its properties. Its largest assets are their interest in a CO2 enhanced oil recovery project in Louisiana’s Delhi field and its interest in a secondary recovery project in Wyoming’s Hamilton Dome field.

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