Published: July 10, 2019 |

[Click image to enlarge]

Sequitur Energy Resources affiliate, Sequitur Permian, recently acquired producing properties located in Reagan and Upton Counties, Texas from Callon Petroleum Operating Company and other undisclosed sellers.

“This transaction is an excellent bolt-on acquisition at attractive metrics, which complements our existing Reagan County position and further expands our footprint into Upton County. It is consistent with our corporate philosophy of focusing on rate of return, cashflow, and operated contiguous acreage positions with substantial upside and modest drilling commitments,” said Scott D. Josey, CEO.

Transaction Highlights:

• Purchase price of $264.6 million, before customary adjustments, effective January 1, 2019
 
• ~11,000 net acres with greater than 200 estimated future development locations based on 880’ well spacing with an average lateral length exceeding 8,300’
 
• ~Average net production of greater than 5,000 BOEPD (three-stream basis - 44 percent oil) during January 2019 with an estimated 19 MMBOE of PDP reserves, valued at over 80% of the purchase price at the time of execution of the Purchase and Sale Agreement in April
 
• Average WI of ~77 percent and effectively 100 percent operated by Sequitur
 
• Acreage is primarily HBP
 
• Substantial oil, gas and water infrastructure providing significant synergies with Sequitur’s existing facilities
 
• Future potential annual contingency payments through 2021, capped at $61.1 million, subject to annual WTI averages
 
• Sequitur’s Permian footprint increases to ~88,000 net acres, ~28,000 of which are in Reagan and Upton Counties and ~60,000 of which are in Irion and Crockett Counties, with net production in excess of 35,000 Boepd (~40 percent oil/68 total liquids)

About Sequitur
Sequitur Energy Resources, LLC, is a private company focused on acquisition and development of oil and gas assets with current positions in the Midland Basin and East Texas. Sequitur was founded by members of the former executive management team of Mariner Energy, Inc. and is sponsored by affiliates of ACON Investments L.L.C., a Washington, D.C. based international private equity investment firm that manages private equity funds and special purpose partnerships that make investments in the United States, Latin America and Europe. Founded in 1996, ACON has responsibility for managing approximately $5.5 billion of capital and has professionals in Washington, D.C., Los Angeles, Mexico City, São Paulo and Bogotá.

To stop by Sequitur’s website, CLICK HERE

Be in-the-know when you’re on-the-go!

CLICK HERE to register your email address.

Copyright © 2019 Mining Connection LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.

For licensing permission, .(JavaScript must be enabled to view this email address)