Triangle Acquires Williston Basin Properties

Source: www.gulfoilandgas.com 5/14/2014, Location: North America

Triangle Petroleum Corporation has entered into two separate definitive agreements to acquire Williston Basin properties ("Acquisitions"), and received bank commitments for 100% financing of the acquisitions, including a new senior secured second lien term loan facility ("Second Lien").

Acquisition of Williston Basin Properties
Signed two separate definitive agreements to acquire approximately 46,100 net acres (46% operated) in a contiguous area of Williams County, ND and Sheridan County, MT:
- 1,175 Boepd of current production - 4,450 MBoe of net proved reserves with a PV-10 value of approximately $110 million based upon internal estimates as of April 30, 2014
Total consideration of approximately $120 million, net of estimated purchase price adjustments and sale of acquired salt water disposal well to Caliber Midstream Partners, L.P.
Triangle, pro forma for the Acquisitions (approximate):
- 135,237 net acres in the Williston Basin
- 91,767 net acres in the core Williston Basin, 57% operated
- 9,575 Boepd of production
- 46,500 MBoe of net proved reserves, based upon internal estimates as of April 30, 2014
- 611 potential gross operated locations remaining, assuming six Middle Bakken wells and four Three Forks wells per DSU
Summary fiscal year 2015 TUSA stand-alone guidance & capital expenditure update:
Transactions expected to close by June 30, 2014; Acquisitions have no material impact to Q1 fiscal year 2015 and Q2 fiscal year 2015 production and financial guidance
Production: ~9% increase to 2nd half fiscal year 2015 estimates
12,000 Boepd from previous 11,000 Boepd (at approximate midpoint)
Adjusted-EBITDA: ~9% A increase to 2nd half fiscal year 2015 estimates
$240 million annualized 2nd half fiscal year 2015 estimate from previous $220 million (at approximate midpoint)
Fiscal year 2015 TUSA capital expenditures: increase to $560 million from $465 million
Does not include RockPile Energy Services ("RockPile") and infrastructure
Please see updated corporate presentation at www.trianglepetroleum.com for more detailed budget and guidance information
Simmons & Company International acted as financial advisor to Triangle

Acquisition Financing
Strong PDP component of the Acquisitions and existing liquidity allow for 100% debt financing
TUSA balance sheet and credit metrics as of May 9, 2014 (excluding RockPile and including cash at Parent)
TUSA pre-acquisition balance sheet as of April 30, 2014 (approximate)
$90 million of cash
$240 million of funded debt on $355 million senior credit facility
TUSA balance sheet, pro forma for $120 million Acquisitions (approximate)
$50 million of cash
$260 million of funded debt on $405 million senior credit facility
$50 million of committed additional borrowing base with Acquisitions
$60 million total debt balance on Second Lien (L + 700 bps pricing)
TUSA pro forma leverage metrics, based on internal estimates(1):
1.1x net debt to annualized 2nd half fiscal year 2015 Adjusted-EBITDA (net of cash on hand)
1.3x total funded debt to annualized 2nd half fiscal year 2015 Adjusted-EBITDA
TUSA pro forma liquidity (approximate)
$50 million of cash on hand (as of April 30, 2014)
$145 million available on senior credit facility
$195 million of total available liquidity

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