Eagle Energy Trust to acquire $26.3 million producing oil assets in Texas

Published Nov 6, 2013
Eagle Energy Trust

Eagle Energy Trust announce that its operating subsidiary, Eagle Energy Acquisitions LP ("Eagle"), has entered into a binding agreement with an undisclosed party to acquire producing petroleum properties in Hardeman County, Texas (the "Assets") for a purchase price of $US 26,250,000 in cash, subject to closing adjustments (the "Acquisition"). Eagle expects to add approximately 300 barrels of oil equivalent ("boe") per day to its existing production. The Acquisition is expected to close on or about November 25, 2013, with an effective date of October 1, 2013.

The Acquisition

The highlights of the Acquisition are as follows:

◾ Current working interest production of approximately 300 boe per day consisting of 97% light sweet crude (43° API) from 34 producing wells ◾ Internally estimated reserves by a qualified reserves evaluator of 1.47 million boe (proved only) as at October 1, 2013, of which 88% is proved developed producing ◾ Historical one year cash flow of $US 4.5 million ◾ Accretive to production, reserves and cash flow per unit ◾ Field netback of $US 48 per boe at $US 93 WTI ◾ Approximately 10,000 gross acres of land, a 150% increase in Eagle's total gross land position ◾ 80% of the land is held by production, with the undeveloped lands remaining available to be drilled under current leases through 2017 ◾ Eagle will operate 85% of the wells and hold a 90% average working interest in the Assets

Tags: Eagle Energy Trust


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