Empire Petroleum (NYSE American: EP) (“Empire” or the “Company”), an oil and gas company with current producing assets in Texas, Louisiana, North Dakota, Montana and New Mexico, let The Crude Life know that it has closed the acquisition of operated and non-operated oil and natural gas assets from a publicly-owned oil and gas company on April 1, 2022.
The acquired assets are located in the Landa Madison and Landa West Madison Units in Bottineau County, North Dakota and the Birdbear Area in Golden Valley and Billings County, North Dakota.
Acquisition Highlights
– Provides immediate accretive cash flow and increased scale with minimal incremental overhead;
– Increases North Dakota pro forma net production by an estimated 24% to approximately 9,250 barrels of oil equivalent per month(1);
– Evaluated solely on proved developed producing (“PDP”) reserves based on forward prices substantially below current levels;
– Adds approximately 700,000 BOE of long-life PDP reserves(2);
– Doubles the leasehold position of Empire’s operated Landa Field and creates a uniform wholly-operated field with calculated original oil in place (OOIP) of approximately 6.5 million barrels;
– The Birdbear Play in Central Western North Dakota adds a new potential consolidation play in the Williston Basin’s prolific Devonian formations; and
– Transaction funded from cash on hand.
The acquisition includes an average operated working interest of 92% and an average net revenue interest of 73% in 15 operated producing wells along with an average non-operated working interest of 6% and average non-operated net revenue interest of 5% in 9 wells currently operated by Empire. The acquisition also includes 2,482 net leasehold acres. Current estimated gross daily production from the assets are approximately 118 barrels of oil.
“We are pleased to successfully close on another accretive transaction – the acquisition of both operated and non-operated oil assets in the prolific and long-life Williston Basin in North Dakota,” said Mike Morrisett, President. “Empire has a clear strategy based on evaluating and executing bolt-on transactions that meet similar criteria while keeping debt levels at a conservative level. We remain focused on organic growth while securing additional incremental long-life and low-decline reserves that generate strong cash flow.”
“Empire’s purchase of the Landa Madison Unit and the addition of non-operated interests to our existing Landa West Madison Unit completes a mission that our team embarked on starting shortly after our purchase of properties from EnergyQuest II in 2019,” added Tommy Pritchard, Chief Executive Officer. “Putting the two units together makes great development sense and we believe this field has the potential to grow and become one of our larger producing assets in North Dakota. Additionally, the Devonian Birdbear Formation holds great promise for Empire as an area that has all the criteria that our team looks for in oil and gas assets. Birdbear has similar attributes to those found on the Eastern flanks of the Williston Basin in Bottineau County and can be easily operated from our current North Dakota infrastructure.”
Notes:
(1) Pro forma production estimate based on average six months ended 3/31/2022.
(2) Reserves calculations are based on Company-engineered reserves estimates as of 2/1/2022 at fixed 12/31/2021 SEC prices of $3.64/MMBTU and $66.55/barrel.
About Empire Petroleum
Empire Petroleum Corporation is a publicly traded, Tulsa-based oil and gas company with current producing assets in Texas, Louisiana, North Dakota, Montana and New Mexico. Management is focused on targeted acquisitions of proved developed assets with synergies with its existing portfolio of wells. More information about Empire can be found at www.empirepetrocorp.com.
If anyone would like to schedule an interview, meeting or news tip email studio@thecrudelife.com
Industrial Integrity and Energy Ethics are the new entry level expectations in oil and gas, and The Crude Life continues to create original Local, Boots-On-The-Ground Journalism while showcasing other environmentally conscious companies.
Communication is vital in today’s energy extraction and empowerment.
About The Crude Life
The Crude Life produces original content that focuses on industry, the people, energy innovations, community building and it’s proactive culture. Our custom content is non-polarizing, trusted and often news making.
The Crude Life promotes a culture of inclusion and respect through interviews, content creation, live events and partnerships that educate, enrich, and empower people to create a positive social environment for all, regardless of age, race, religion, sexual orientation, or physical or intellectual ability.
Part of our mission is to enable people, companies and communities to affect change, demonstrate their transformative actions and drive energy awareness through storytelling and access to resources.
Sponsors, Music and Other Show Notes
Studio Sponsor: The Industrial Forest
The Industrial Forest is a network of environmentally minded and socially conscious businesses that are using industrial innovations to build a network of sustainable forests across the United States.
Weekly Sponsor: KBL Complete Services
Strikingly dynamic, incomparably strong and absolutely reliable, KBL Complete Services excels at all of your pipeline needs. From AGM Surveys, ILI tool tracking, Digsite Locating, and Equipment Decontamination, to Project Management, KBL Complete Services are ready to make your project a success.
Weekly Sponsor: Great American Mining Co
Great American Mining monetizes wasted, stranded and undervalued gas throughout the oil and gas industry by using it as a power generation source for bitcoin mining. We bring the market and our expertise to the molecule. Our solutions make producers more efficient and profitable while helping to reduce flaring and venting throughout the oil and gas value chain.
Join Podcasters from across the world and all walks of life as they unite to bring civil solutions to life and liberty.
Studio Email and Inbox Sponsor: To Be Announced
Featured Music: Alma Cook
For guest, band or show topic requests, email studio@thecrudelife.com
Spread the word. Support the industry. Share the energy.
