Empire Petroleum has closed on the acquisition of COERT Holdings 1 LLC’s interests in the three assets owned by Empire and located in New Mexico, the company said on Aug. 10.
The three assets in Lea County are:
- Eunice Monument South Unit A
- Eunice Monument South Unit B
- Arrowhead Grayburg Unit
The purchase price of about $6.7 million includes $5 million in cash by EEF Acquisition Co. LLC, which is a wholly owned subsidiary of Empire’s largest shareholder, Energy Evolution Master Fund Ltd.
EEF Acquisition Co. has been assigned an undivided 90% ownership interest in the assets. Empire has been granted a three-year option to purchase the interests for about $5 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,” said Mike Morrisett, president and CEO of Empire, in a press release. “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.”
Recommended Reading
‘Oversupplied’ NatGas Market Aiding Williams’ Storage Business
2024-05-08 - Midstream company Williams saw overall demand growth as heavy gas volumes passed through its network.
Tallgrass Energy Announces Latest Open Season for Pony Express Pipeline
2024-03-12 - Prospective shippers can review details of the open season, which began March 11, after signing a confidentiality agreement with Tallgrass.
Scathing Court Ruling Hits Energy Transfer’s Louisiana Legal Disputes
2024-04-17 - A recent Energy Transfer filing with FERC may signal a change in strategy, an analyst says.
Energy Transfer Asks FERC to Weigh in on Williams Gas Project
2024-04-08 - Energy Transfer's filing continues the dispute over Williams’ development of the Louisiana Energy Gateway.
US Appeals Court Upholds FERC Approvals for Gas Pipeline Expansion
2024-05-02 - A unanimous three-judge panel of the U.S. Circuit Court of Appeals for the D.C. Circuit held that the Federal Energy Regulatory Commission was right to determine the Evangeline Pass Expansion project is functionally separate from four related gas infrastructure developments.