Empire snaps up Exxon assets in New Mexico
Oklahoma-based Empire Petroleum announced on May 18 it had acquired producing oil and gas assets in Lea county of New Mexico from ExxonMobil.
The deal covers 700 oil, gas and injection wells, gathering assets and 40,000 net acres of Permian leasehold, Empire said. The assets will net Empire 1,100 barrels of oil equivalent/day of hydrocarbons, of which 67% is oil. They include the mature Eunice Monument (EMSU) and Arrowhead Grayburg (AGU) fields on the northwest edge of the Permian. EMSU was discovered in 1929 and was developed mostly in the 1930s.
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To fund the takeover, Empire has entered into a $16.25mn senior secured convertible note with Energy Evolution Master Fund with a 3.8%/year annual interest.
"We believe the EMSU and surrounding acquired fields have a significant resource base," Mike Morrisett, president of Empire Petroleum, commented. "In our view, these assets have current infill drilling and return-to-production well potential that should shortly enhance daily production. We thank our major and core shareholders in providing 100% of the capital to close this key accretive transaction for Empire. We are also excited to have retained the existing sellers’ team that has successfully run the field for several years."
Once the deal is closed, Empire will operate in five states with produce around 1,800 boe/d.