Houston producer EnergyQuest Resources LP and EnergyQuest Management LLC said Friday they have acquired producing assets in four separate transactions in Kansas, Louisiana and East Texas for an undisclosed amount.
Specifically, it reported that it has acquired Kanmap Inc. and Cherokee Methane Corp., which were merged into a single company (TexKan), for an undisclosed cash consideration. The acquisition consists of proved reserves of 9.6 Bcf currently producing 1.2 MMcf of gas equivalent per day, 8,350 acres of producing property, 27 miles of pipeline and a gas processing plant.
Via its subsidiaries, EnergyQuest will process and transport gas from third-party sources as well as its own production. It will operate the fields and the processing/pipeline system located in Montgomery County, KS. The company said it has identified significant additional reserve potential in the acquired properties and will initiate an infill drilling program during the first quarter.
In addition to TexKan, EnergyQuest said it also acquired from two undisclosed sellers the Bosco Field located in Acadia Parish, LA, and a significant working interest in the Woodlawn Field located in Marion and Harrison Counties, TX. EnergyQuest will operate both fields.
The acquisitions have more than tripled both EnergyQuest's daily production and proved reserve base, according to the company. EnergyQuest CEO Wayne Greenwalt declined to say what the company's daily production capability was following the transactions.
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