American Patriot Oil and Gas has acquired assets in South Texas with aggregate proven reserves of 285 barrels of oil equivalent per day (boepd)/900,000 barrels.
The total acquisition value of the transaction is $4.5m, to be realised over two tranches.
Pursuant to the first tranche, American Patriot has agreed to wholly acquire assets owned by Safari Oil and Gas Production and Anasazi New Ventures in Hidalgo, Hopkins and Goliad Counties.
The first tranche will offer a potential oil and gas production of 170boepd and proven reserves of 300 million barrels of oil equivalent (mmboe).
American Patriot Oil and Gas CEO Alexis Clark said: “Completing this transaction transforms American Patriot into a US oil production company with an immediate and growing cash flow and reserve base."
The second tranche is expected to close next month and set to more than double the production in the first tranche, with the additional 120boepd and reserves of 600mmboe.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataSeveral other transactions are expected to be closed in the second half of this year, which will enhance the production capacity of the company to around 1,000boepd next year.
With regard to the transaction with Safari, American Patriot will acquire 25boepd and 470 million cubic feet a day (mcfd) and proven reserves of 30mbbl and 709 million cubic feet (mmcf), two producing gas wells, one producing oil well, one non-producing well and one salt water disposal well.
The transaction with Anasazi includes 20boepd oil and 300mcfd gas production and proven reserves of 62mbbl oil and 285mmcf gas, with rights for one producing gas well, and 22 producing oil wells located in Goliad County, Texas, and La Salle Parish, Louisiana.