Tulsa-based Citizen Energy announced that it has entered into a definitive $ 153 million Purchase and Sale Agreement with an undisclosed seller for interests in the Oklahoma STACK and SCOOP works.
The Purchase and Sale Agreement states that Citizen will acquire ~ 8,000 BOEPD of production (58% gas and 25% NGL), 97 operated wells, 400 non-operational wells, and 28,000 net acres (94% HBP) that is largely located within Citizen’s existing footprint.
Citizen Energy wells drilled in the last 3 years
The company stated that the contiguous nature of the acquisition provides an ideal opportunity for infrastructure connectivity and development continuity. The acquisition will have an effective date of July 1, 2021.
Pro forma for the acquisition, Citizen will have net daily production of ~ 74,000 BOEPD, interests in more than 1,700 wells and more than 230,000 net acres throughout the Mid-Continent.
A principal purchase price of $ 153MM will be fully funded from existing liquidity within Citizen’s RBL facility, which was expanded to $ 850MM prior to the transaction. Citizen expects the acquisition to increase shareholder returns and be crucial in building and maintaining its momentum as Oklahoma’s largest private operator.
The closing is expected to occur in the fourth quarter of 2021 and is subject to customary conditions and purchase price adjustments.
Schaper Energy Consulting acted as technical advisor and Shearman & Sterling acted as legal advisor to Citizen Energy on the transaction.
Source: Business Wire