Constellation Energy Partners LLC Friday said the company agreed to buy oil and gas properties in the Cherokee Basin of Oklahoma for $240 million.
Constellation is buying privately held Amvest Osage Inc., a unit of Amvest Corp. Coal mining company Consol Energy Inc. is buying Amvest in a transaction expected to close in the third quarter.
ADVERTISEMENT
The properties include about 370 producing wells with estimated third-party proved reserves of 93 billion cubic feet equivalent.
"These acquired properties combined with our previous acquisition in the Cherokee Basin expand our ownership and further establish us as one of the leading producers in the basin," said Felix Dawson, chief executive officer of Constellation Energy Partners. "The acquisition also provides potential opportunities for operational synergies and better positions us for further acquisition growth."
The transaction is expected add immediately to distributable cash flow per unit, and Constellation said it expects to spend $9 million on maintenance capital expenditures in the first year.
The company, which is partly owned by Constellation Energy Group Inc., will fund the purchase with proceeds from the sale of common units to institutional investors.
The deal is subject to purchase price adjustments and is expected to close by the end of the month.
Questions or comments about this story should be directed to the Financial News desk of The Associated Press at 212-621-7190.
Your Ads At Here
