BCM Energy Acquires 22 Leases & 42 Wells in a Deal Valued at $2.8 Million
BCM Energy Acquires 22 Leases & 42 Wells in a Deal Valued at $2.8 Million
HOUSTON--(BUSINESS WIRE)-- BCM Energy Partners, Inc., (OTC: BCME), through its subsidiary, BCM Energy Texas, LLC, has signed a Purchase and Sale Agreement to acquire leases, wellbores and existing production in East Texas from subsidiaries of New Times Energy Corp (166.hk) for total consideration of $2,800,000 USD.
Closing is expected to occur by late February 2013, whereby BCM will pay $300,000 cash and $2,500,000 in the form of a convertible note, strike price of $2.90, in exchange for 22 primary leases including 42 wells and related equipment of which 10 are producing approximately 14 bopd (barrels of oil per day). Total reserves are 187 mbo (thousands of barrels), a PV10 value of $2,814,000, which BCME expects to be able to increase through new engineering and geological studies. Additionally, BCM believes that EOR (Enhanced Oil Recovery) techniques can further improve the value of this acquisition.
"This acquisition further exhibits our ability to identify and acquire off-the-radar assets that can be further enhanced through access to capital and professional management. The strike price of $2.90 per share demonstrates investor confidence in our business prospects," stated David M. Beach, President & CEO.
The East Texas Field is located in the East Texas Woodbine, Quitman, SE and Nova Fields within the North Eastern region of the State of Texas. The East Texas Field was discovered in the 1930s and covers 140,000 acres (570 km2) and parts of five counties. The property contains 30,340 historic and active oil wells and is the second largest oil field in the United States outside of Alaska. The field is also first in total volume of oil recovered since discovery. The primary productive geologic unit is the Woodbine Formation, a regional petroleum-bearing unit that has been known since the early part of the 20th century.
In August 2012, BCM acquired assets in North Louisiana from a subsidiary of New Times Energy in exchange for $2,718,000 USD. Total consideration paid was $405,000 cash and a $2,313,000 convertible note, strike price of $2.90 per share.
BCME currently maintains a pipeline of acquisitions representing over $100mm in proven and probable reserves within known oil and gas reservoirs. The company also expects to continue to acquire assets similar to University and Caddo in the months ahead in an effort to increase production and BCME's portfolio of assets.
About BCM Energy Partners, Inc.
BCM Energy Partners acquires distressed oil and gas assets with the intent to build a portfolio of proven reserves associated with producing wells. Since late 2007, BCM Energy Partners has been actively developing a network of field owners and managers throughout the Gulf Coast with a focus on identifying distressed, "off-the-radar" opportunities. BCM has an effective management team that is well-connected within the Gulf Coast oil and gas industry with over 100 years of collective experience acquiring and exploiting oil and gas assets. Management is supported by an impressive roster of equity-incentivized advisors from the corporate finance and energy industries. More information is available at www.BCMEnergy.com.
Forward-looking statements speak only as to the date they are made, and except for any obligation under the U.S. federal securities laws, BCM Energy Partners undertakes no obligation to publicly update any forward-looking statement as a result of new information, future events or otherwise.
BCM Energy Partners, Inc.
Investor Relations
Alex Champagne, 713-623-2003
ir@bcmenergy.com
KEYWORDS: United States North America Texas
INDUSTRY KEYWORDS:
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