Pennsylvania Operator To Acquire Three Natural Gas Producers
Last week, American Energy Partners Inc. stated its plans to acquire three oil and natural gas producers. The deal is valued at almost $11 million and includes companies in western Pennsylvania and West Virginia.
American Energy Partners said it would obtain all of the stock and units of the three undisclosed companies. CEO Brad Domitrovitsch says: “This transaction furthers our commitment to acquiring steady cash-flowing businesses while enhancing our ability to develop alternative green energy opportunities with the vast amount of acreage included in the package.”
The sale involves 467 wells currently yielding 1.25 Bcfe/d and midstream assets spread over 695 acres (includes 100% owned surface and mineral rights). Additionally, there are no drilling commitments or obligations for the properties.
American Energy controls several subsidiaries, including:
- Oilfield Basics LLC
- Hickman Geological Consulting LLC
- American Energy Solutions LLC
- Hydration Company of PA
- Gilbert Oil and Gas
These subsidiaries are primarily involved in water treatment for the industrial and energy sectors.
Moreover, Gilbert Oil and Gas is a producer with assets in western Pennsylvania. These include more than 1,000 acres of shallow rights in an area of Marcellus and Utica shale development.
The company anticipates uniting its current upstream and midstream operations into the newly acquired companies, which would increase net reserves by 19 Bcfe. Management also expects the transaction to increase annual revenue by $2 million beginning in the third quarter of 2021. The deal should close in July.
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