American Energy Partners Inc. said this week that it would acquire three oil and natural gas producers in western Pennsylvania and West Virginia in a deal valued at nearly $11 million.
The Allentown, PA-based company, traded over the counter, said it would acquire 100% of the stock and units of the three undisclosed companies.
“This transaction furthers our commitment to acquiring steady cash flowing businesses while enhancing our ability to develop alternative green energy opportunities with the vast amount of acreage included in the package,” said CEO Brad Domitrovitsch.
The deal includes 467 wells that are producing 1.25 Bcfe/d and midstream assets scattered across 695 acres of 100%-owned surface and mineral rights. There are no drilling commitments or obligations for the properties.
American Energy is the parent company of Hydration Company of PA LLC, American Energy Solutions LLC, Gilbert Oil and Gas, Hickman Geological Consulting LLC and Oilfield Basics LLC. The subsidiaries are largely engaged in water treatment for the industrial and energy sectors. Gilbert is a producer with assets in western Pennsylvania, including more than 1,000 acres of shallow rights in an area of Marcellus and Utica shale development.
The company expects to integrate its current upstream and midstream operations into the acquisition, which would boost net reserves by 19 Bcfe. Management also said the transaction is expected to increase annual revenue by $2 million beginning in 3Q2021. The deal is scheduled to close in July.
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