American Energy – NonOp, LLC (AENO), an affiliate of American Energy Partners, LP, announced that it has closed a series of transactions with Double Eagle Energy Holdings LLC (Double Eagle) and several additional parties to acquire non-operated working interests with approximately 1,800 barrels of net oil equivalent (boe) of daily production in the SCOOP and STACK resource plays in southern and central Oklahoma. The properties, which are primarily located in the counties of Canadian, Carter, Garvin, Grady, Kingfisher, Love and Stephens, were acquired for an aggregate purchase price of approximately $251 million. In conjunction with the acquisitions, AENO has secured a $250 million credit facility led by MUFG Union Bank, N.A. The credit facility has an initial borrowing base of $50 million.
AENO believes it has established a premier, diversified position in the SCOOP and STACK resource plays across 543 existing or potential spacing units with significant exposure to the highly productive Woodford Shale and Meramec Shale formations and the emerging Goddard/Springer Shale formation, which has recently yielded 24-hour initial production rates greater than 1,100 boe per day resulting in average single well gross estimated ultimate recoveries of 940 mboe (84% liquids).
- Key operators: Continental Resources, Inc., Newfield Exploration Mid-Continent, Inc., XTO Energy Inc. (ExxonMobil) and Marathon Oil Company ? Approximately 1,800 net boe per day, plus 82 wells currently drilling or waiting on completion ? Non-operated working interest in 543 existing or potential spacing units ? 35% held by production, 31% actively being unitized ? 38 horizontal rigs on AENO leasehold (48% of all rigs currently active in the plays) ? 68 horizontal rigs on or within two miles of AENO leasehold (87% of all rigs currently active in the plays)
AENO’s lead equity investor is The Energy & Minerals Group, with additional equity provided by AENO’s management team. Double Eagle is a company owned by funds affiliated with Apollo Global Management, LLC (NYSE: APO).