MD America Energy LLC (MDAE) has entered into a purchase sale agreement (PSA) with an undisclosed seller to acquire its operated properties in East Texas, which primarily target the Woodbine formation. Closing is expected late February.
MDAE CEO Eric Waller stated, "This acquisition readily integrates into our existing core properties, expands the impact of our regional capability, increases our presence in Madison County, and creates drillable inventory for the future. The acquisition also provides additional midstream and other assets that we ascribe value to and is in support of our plans to grow the business during this period of generational opportunity."
MDAE will fund the acquisition with cash provided by its parent, Meidu Energy Corp.
MDAE is a Fort Worth, Texas-based oil and gas operating company, whose assets currently consist of approximately 55,000 acres in three counties in East Texas, where it has drilled and operates over 160 oil wells producing principally from the Woodbine formation.