Empire Petroleum Corp. said Sept. 6 it entered a term sheet to acquire producing Haynesville assets in North Louisiana.
The assets comprise about 11,000 gross (9,000 net) acres of leasehold HBP in the East Haynesville and Oaks fields in Claiborne Parish, La. Current production is about 400 barrels of oil equivalent per day from 28 wells, with net cash flow of roughly $200,000 per month.
The seller and terms of the transaction were undisclosed. The wells to be included in the transaction target the Pettit, Lower and Upper Haynesville, Cotton Valley and Smackover reservoirs, according to the company release.
Tulsa, Okla.-based Empire said it sees this transaction having upside potential with numerous refrack, behind-pipe and return to production candidates.
“We have been working very hard to identify and structure the right platform asset with which to grow Empire,” Mike Morrisett, president of Empire, said in a statement. “We believe momentum is building in the North Louisiana area in re-stimulating old wells with higher proppant completions. We are excited to have this potential opportunity as our initial producing asset in the area.”
The company said it expects signing a purchase and sale agreement within the next few weeks and closing to occur early fourth-quarter 2017.