Panhandle closes Eagle Ford purchase, expands bank credit facility

Panhandle Oil and Gas Inc.

Panhandle Oil and Gas Inc. (NYSE: PHX) has closed on the acquisition of certain Eagle Ford assets in La Salle and Frio counties for $80,400,000. This acquisition was funded by utilizing the company's bank credit facility. The deal was announced in May.

The assets were acquired from private sellers and include a 16% non-operated working interest in an 11,100 gross leasehold acres (1,775 net acres) block that is largely contiguous and entirely held by production, 63 producing wells (57 Eagle Ford, 5 Pearsall, and 1 Buda), one well being drilled and 109 undeveloped Eagle Ford locations. Three wells are in the completion phase. This property is being developed with a one drilling rig program by the operator, privately held Cheyenne Petroleum Co. Oklahoma City-based Cheyenne came in at No. 63 in the April OGFJ100P list of top privately-held companies by boe.           

Production from the acquired assets, net to Panhandle's interest for May 2014, averaged 825 boe per day (80% oil). There were five new wells, which began production in May and were on line for a partial month.

In addition, the company reported that, on June 17, it increased its bank credit facility to $200 million with a current borrowing base set at $130 million. The terms and conditions of the credit facility remain materially unchanged, and the facility matures on November 30, 2018.



Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...