New Orleans-based BCM Energy Partners Inc., an oil and gas company focused on acquiring and developing distressed assets, announced Aug. 22 that it executed an agreement with Drum Oil & Gas Inc. and Drum Equipment Inc. to acquire certain producing assets in Liberty County, Texas, east of Houston.
King Krebs and Jurgens PLLC served as counsel to BCM Energy in this transaction, which contemplates a closing by Sept. 16.
BCME has agreed to pay $2.5 million in cash to acquire three leases including 44 wells and related equipment. In addition, BCME will pay $100,000 for an option to purchase an additional 11 leases with 47 associated wells and equipment under the same terms.
The Liberty package will increase total company reserves by an estimated 305,000 barrels (proven), representing over $13 million in discounted present value. BCM Energy management is of the opinion that with further engineering and geologic review, more reserves can be established for this asset. Additionally, BCM Energy plans to include enhanced oil recovery technologies in Liberty Field with expectations to increase production above current forecasts.
Immediately after closing, BCM Energy plans to invest $400,000 in-field to exploit multiple behind-pipe opportunities in an effort to increase production. BCM E will then re-engineer associated proven reserves with its engineering and geologic consultants and continue to evaluate in-field opportunities, including drilling locations.