The acquisition from Paloma will add approximately 62,000 net acres spanning across Canadian, Grady, McClain, Caddo, Custer, Dewey, Blaine, and Kingfisher counties, Oklahoma.
Mach Natural Resources (MNR.N) said on Monday said it will buy certain oil and gas assets in the Anadarko Basin in Oklahoma from privately-held Paloma Partners for $815 million in cash. This wide-ranging basin covers more than 50,000 square miles, extending from west-central Oklahoma and the Oklahoma Panhandle into parts of southwest Kansas, southeast Colorado, and the Texas Panhandle.
The Anadarko Basin has been a major focus of the oil and gas industry for many years, and more recently it has become best known for its highly productive unconventional resource plays, namely the SCOOP and STACK plays.
Mach Natural Resources said the Paloma assets have reserves of 75 million barrels of oil equivalent (mmboe) and will boost its existing output of about 65,000 barrels of oil equivalent per day (boepd) by roughly 32,000 boepd.
The acquisition from Paloma will add approximately 62,000 net acres spanning across Canadian, Grady, McClain, Caddo, Custer, Dewey, Blaine, and Kingfisher counties, Oklahoma. More than 75% of the newly acquired acreage falls within Mach’s core development area in Canadian and Grady counties.
The deal is expected to close on Dec. 29 this year, with an effective date of Sept. 1.
Houston-based Paloma Partners is backed by energy sector-focused EnCap Investments and is focused on the acquisition and development of U.S. oil and gas assets.
There is currently one rig running on Paloma’s acreage in Grady County; six wells are expected to be completed between the effective and closing dates, Mach said.
Mach plans to fund the acquisition with new debt financing. The company has secured $825 million in senior secured financing from a group led by Chambers Energy Management and EOC Partners; Mercuria Investments US Inc., Macquarie Group and funds managed by Farallon Capital Management LLC are also participating in financing the loan.