Panhandle Oil & Gas acquires mineral, oil and gas properties for $9M
Panhandle Oil & Gas has entered into a definitive agreement to acquire certain mineral acreage and producing oil and gas properties from a private seller for total consideration of $9M cash. The transaction is expected to close within 45 days and will have an effective date of June 1. The acquisition will be funded utilizing the company's bank credit facility, reaffirmed on July 2 at $80M with approximately $40M in current availability. The acquisition consists of 3,126 net mineral acres in the core of the Bakken/Three Forks Play in Williams, McKenzie, Dunn and Divide Counties, N.D.; royalty interest in 94 Bakken and Three Forks producing wells with current net production of 53 Boe per day; royalty interest in 20 Bakken and Three Forks drilled uncompleted (DUC) wells; royalty interest in 194 Bakken and Three Forks undeveloped locations at current spacing. Primary operators include Continental Resources, Crescent Point, Hess, Oasis, Statoil and Whiting. Production and reserves are approximately 66% oil, 17% NGL and 17% gas.