1-QR Energy to buy oil and gas assets for $557mln

QR Energy LP said it will buy some oil and natural gas properties across United States from its sponsor Quantum Resources Fund for $577 million.

The assets, located in Permian Basin in Texas, Ark-La-Tex (the intersection of Arkansas, Louisiana, Texas, and Oklahoma) and mid-continent, are expected to generate 8,000 barrels of oil equivalent per day in the fourth quarter, the company said.

Houston, Texas-based QR Energy will issue $350 million of convertible preferred units at $21 per unit to Quantum Resources Fund and will pay $227 million in cash by borrowing.

Private equity firm Quantum Energy Partners is invested in both the fund and the company.

The deal will immediately add to QR Energy's distributable cash flow per unit, the company -- which owns onshore and natural gas reserves in North America -- said in a statement.

Shares of QR Energy, which listed last December, closed at $17.13 on Friday on the New York Stock Exchange. They have been trading below $20 -- the price at which they listed -- for more than a month.

Source: Reuters 

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Encore Energy buys $14.8M in Permian Basin oil and gas assets

Encore Energy Partners LP    said Tuesday it has closed on a $14.8 million purchase in the Permian Basin for oil and natural gas assets from a private seller.

The acquisition has estimated total net proved reserves of 1.03 million barrels of oil equivalent; about 87 percent are oil and natural gas liquids reserves. Current production is approximately 115 barrels of oil equivalent per day.

Houston-based Encore (NYSE: ENP) also has entered into a definitive agreement to pay $28.5 million for certain non-operated working interests in producing oil and natural gas assets in Sweetwater County, Wyo. The seller is undisclosed.

These assets have an estimated total of proved reserves of 4.175 million barrels of oil equivalent; approximately 65 percent are natural gas reserves, and 35 percent are oil and natural gas liquids reserves. The assets are 90 percent proved developed; the net production is about 880 barrels of oil equivalent per day.

Closing on this deal is expected in September.

Source: Houston Business Journal 

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Encore aquires Permian Basin oil, gas assets in Texas

Encore Energy Partners (ENP) has closed on the acquisition of producing oil and natural gas properties in the Permian Basin of West Texas in the US for a net purchase price of $14.8m from a private seller.

According to the company, the acquired assets have estimated total net proved reserves of 1.03 million barrels of oil equivalent, of which about 87% are oil and natural gas liquids reserves.

The properties are 51% proved developed and the current production is approximately 115boe/d.

ENP has also entered into an agreement to buy certain non-operated working interests in producing oil and natural gas assets in Sweetwater County in the US state of Wyoming for $28.5m.

These assets have estimated total proved reserves of 4.175 million barrels of oil equivalent, of which about 65% are natural gas reserves and 35% are oil and natural gas liquids reserves.

The properties are 90% proved developed and the net production attributable to the assets being acquired is about 880boe/d, the company said.

Source: Energy Business Review 

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