Another Big Move in Oklahoma Energy

Another Big Move in Oklahoma Energy

 The bid process has wrapped up and the winner announced for Okla. City-based Chesapeake Energy’s Mid-Continent assets, writing a new—some might say brighter—chapter to the E&P’s storied history following its Chapter 11 bankruptcy in April. Okla., neighbor Tapstone Energy sealed the winning deal for $130.5 million after its initial “Stalking Horse” offer of $85 million. More than 100 companies tossed their hats in the ring for a prize that includes about 736,000 acres in the Anadarko Basin producing an average 14,000 BOEPD. Upon filing for Chapter 11, Chesapeake carried a debt load of around $9 billion, which the company is working to slash with the goal to emerge from bankruptcy late next year. Tapstone, coincidentally, completed a financial restructuring of its own also in April and raised $50 million in an out-of-court reset to reduce debt and fuel its ability to pursue near-term acquisitions and potential mergers. Looks like it’s found one.

 

Tapstone Energy

Tapstone Energy is a growth-oriented, independent oil and natural gas company focused on the development and production of oil, natural gas, and NGLs in the Anadarko Basin in Oklahoma, Texas and Kansas, while also maintaining a disciplined financial strategy.

tapstoneenergy.com

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Learn more about REC and our acquisitions and divestitures services at www.ReeseEnergyConsulting.com.

 

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A Contango Fandango?

A Contango Fandango?

In its figurative term, “fandango” is a synonym to describe a “brilliant exploit.” For Houston-based Contango Oil and Gas, that may well sum up its rationale to scoop up Tulsa-based Mid-Con Energy in an all stock merger valued at $400 million. Reese Energy Consulting today is following the latest news from Contango, which will assume ownership of Mid-Con’s assets in Okla., and Wyo., after replacing Mid-Con as the operator of those assets in July. The deal is expected to close by early 2021, and pairs an E&P with a stated goal of “consolidating a sector that is in dire need of it” with another that offers high-value, low-decline oil and gas properties but has financially struggled. Mid-Con issued a “going concern” in August and posted an $11.9 million loss in 2Q. Contango also has reported a private-equity capital raise of $39.7 million from the sale of 26,451,988 shares of common stock to fund the Mid-Con acquisition. The company says it will relocate its headquarters to the DFW area. Contango’s onshore operations include 7,719 net acres primarily in Texas and Okla.

 

Contango Oil and Gas

Contango Oil & Gas Company is a Houston, Texas based, independent oil and natural gas company whose business is to maximize production and cash flow from its offshore properties in the shallow waters of the Gulf of Mexico and onshore properties in Texas, Oklahoma, Louisiana and Wyoming and, when determined appropriate, to use that cash flow to explore, develop, and increase production from its existing properties, to acquire additional PDP-heavy crude oil and natural gas properties or to pay down debt.

contango.com

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Learn more about Reese Energy Consulting and our A&D services at www.ReeseEnergyConsulting.com.

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Panhandle Gets its Groove On

Panhandle Gets its Groove On

As the sun rose on 2020, Okla. City-based Panhandle Oil and Gas officially retired its business model as a working-interest owner in the properties it held to a minerals-only manager. No longer would the company participate in drilling new wells. Instead, with a fresh CEO at the wheel, Panhandle looked to add more producing mineral assets with active drilling programs to its portfolio. Reese Energy Consulting today is following the latest news from Panhandle, which has now closed on two acquisitions from Okla., neighbor Red Stone Resources—one in the SCOOP, and the second in the Haynesville marking the company’s debut there. The purchase price of $6.4 million in cash and $0.5 million in Panhandle stock buys a total 795 net acres with a combined net production of 1.1 MMCFD of which 93% is natural gas. With this year’s first acquisition under its belt, Panhandle—literally hours later—announced a name change to PHX Minerals. The company owns about 258,000 net mineral acres in Okla., N.D., Texas, N.M., and Ark., of which 71% is unleased and undeveloped.

Panhandle Minerals

Oklahoma City-based, PHX Minerals Inc. (NYSE: PHX) is an oil and natural gas mineral company with a strategy to proactively grow its minerals position in our core areas of focus. PHX owns approximately 253,000 net mineral acres principally located in Oklahoma, North Dakota, Texas, New Mexico and Arkansas. Approximately 71% of this mineral count is unleased and undeveloped.

phxmin.com

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Learn more about REC and our producer services at www.ReeseEnergyConsulting.com.

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Midstreamers Announce Open Seasons

Midstreamers Announce Open Seasons

Dallas-based Navigator Energy has launched a binding open season for expansion of the company’s planned Borger Express Pipeline, which will extend from the Cushing Hub to Borger, Texas. The system will include an existing 180-mile crude oil pipeline and 200 miles of new pipe that will stretch from Cleo Springs, Okla., to Borger. Upon completion in early 2022, the Borger Express will be capable of transporting 90,000 BPD of five neat grades of crude oil and condensate bound for third-party storage facilities and a refinery in Borger. The call for shipper commitments runs from Oct. 5 – Nov. 5. Turning to the West, Dallas-based Holly Energy has announced a binding open season to expand crude oil capacity to 56,000 BPD on its 289-mile Frontier Aspen Pipeline. The Frontier Aspen, which runs from Casper, Wyo., to Frontier Station, Utah, connects to the company’s SLC Pipeline that ultimately delivers crude to Salt Lake City refiners. Commercial service is expected in 3Q 2021. Open season extends from Oct. 1 – Oct. 22.

Navigator Energy

Navigator Energy Services is a growth-oriented, independent midstream company focused on developing and delivering midstream infrastructure solutions for America’s energy producers. The company’s sole focus is to provide its customers with comprehensive midstream solutions that maximize both operational flexibility and the value of their hydrocarbons.

www.nesmidstream.com

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Learn more about Reese Energy Consulting and our range of midstream services at www.ReeseEnergyConsulting.com.​