Acacia Research Announces Closure of Benchmark Energy's Transformational Acquisition in the Western Anadarko Basin
Acacia Research Corporation announced that its subsidiary Benchmark Energy II, LLC has completed the previously announced acquisition of mining assets and related facilities in Texas and Oklahoma from a private seller. This is stated in the media reports.
The acquisition includes a stake in approximately 470 operational production wells in the center of the Western Anadarko basin, as well as an unexploited stake in the undeveloped Cherokee field. The wells are mature, have low drop profiles and will add significant diversification to Benchmark production with a balanced forecast portfolio consisting of approximately 60% liquid and 40% natural gas. In addition, the proximity of assets to existing Benchmark facilities in Texas creates additional potential for the development of large-scale operational synergies within the basin.
The acquisition expands production positions throughout the central part of the Western Anadarko basin with an additional approximately 140 thousand acres, including approximately 110 thousand. acres, 100% of which are in operation, and an additional approximately 27 thousand. acres in the developing Cherokee field.
These are rich deposits with a low degree of decline in production, a mature production base and production of about 6 thousand barrels of oil equivalent per day.
The expected annual cash flow at the asset level will be about $45 million. Benchmark expects to hedge significant production volume
The deal was funded with cash from existing owners Benchmark, Acacia and McArron Partners, as well as debt financing from Texas regional banks. Acacia's share of the refund, including fees, was approximately $59.9 million.
Acacia is a publicly traded company (Nasdaq: ACTG) that engages in the acquisition and management of attractive businesses in the industrial, healthcare, energy and mature technology sectors.
McArron Partners is the investment arm of the Jones family of Albany, Texas. McArron's chief executive officer is Johnny Jones, founder of Jones Energy and former chairman of the Texas Oil and Gas Association and the U.S. Oil and Gas Association. McArron directs its capital into a combination of global public and private investments. The Jones family has been supporting entrepreneurs in the energy sector for more than five decades.
Benchmark is an independent oil and gas company engaged in the acquisition, production and development of oil and gas assets in mature resource fields in Texas and Oklahoma.
