DALLAS and HOUSTON, Dec. 20, 2013 /PRNewswire/ -- Texas-based Peregrine Petroleum has completed a significant acquisition of operated and non-operated assets in Oklahoma's Anadarko Basin, one of North America's most abundant oil and natural gas regions.
The Anadarko Basin deal between privately held Peregrine and Oklahoma-based Primary Natural Resources III LLC was closed on Dec. 19, 2013. Peregrine is acquiring more than 10,000 net acres in Ellis and Roger Mills Counties in western Oklahoma with production from the Cleveland, Tonkawa and Atoka formations.
At closing, Peregrine assumed operatorship in 35 wells and non-operated interests in 31 wells. Currently, four operated and two non-operated wells are awaiting completion. Current net production (93% operated) is estimated to exceed 2,650 barrels of oil equivalent daily (BOE/D), with oil and natural gas liquids representing more than 70% of production.
Peregrine currently operates one horizontal rig and plans to drill more than 48 operated locations in the Lower Cleveland and Tonkawa formations. An additional 59 locations exist in the non-operated acreage. While these assets are largely held by production (HBP), Peregrine plans to drill 18 new wells in the Anadarko Basin in 2014 and accelerate drilling in 2015, primarily in the Lower Cleveland formation.
"Today's announcement represents an important milestone for Peregrine by adding another core area of operations to our portfolio," says Michael B. Wisenbaker Jr., Peregrine's president. "This acquisition provides a significant operated position in a liquids-rich multi-horizon basin. The economics associated with applying unconventional technology to the Lower Cleveland are impressive and continue to improve with drilling and completion refinements. We anticipate further cost reductions and improved well performance as we ramp up our drilling operations. Additional drilling locations in the form of down spacing and additional horizons also help make this acquisition a great long-term asset for Peregrine, and we are excited about our prospects going forward."
Peregrine has steadily grown a portfolio of successful U.S. oil and gas ventures since it was founded five years ago by a group of energy industry veterans from Hunt Petroleum Corp. In addition to its latest Anadarko Basin acquisition, Peregrine maintains current active operations in the Bakken and Three Forks formations in North Dakota's Williston Basin and West Texas' Permian Basin.
Peregrine was represented in the transaction by the law firm Thompson & Knight LLP. J.P. Morgan Securities, LLC, acted as Sole Bookrunner for the credit facility. Union Bank, N.A., Bank of Texas and Comerica Bank participated in the credit facility.
About Peregrine Petroleum
With offices in both Dallas and Houston, Peregrine Petroleum maintains active operations in some of the country's top oil and gas trends, including the Permian Basin in West Texas, North Dakota's Williston Basin and Oklahoma's Anadarko Basin. Peregrine's continuing growth initiatives are focused on internal and external oil and gas exploration and development throughout the continental U.S. Learn more about the company at http://www.peregrinepetroleum.com.
For more information, please contact Bruce Vincent at 800-559-4534 or email@example.com.
SOURCE Peregrine Petroleum LLC