By Emon Reiser
Evolution Petroleum inked a $43.5 million deal that will add about 1,550 barrels of oil to the Houston company’s assets.
Evolution Petroleum on Tuesday it would acquire non-operated oil and natural gas assets in the South Central Oklahoma Oil Province and the Sooner Trend Anadarko Canadian Kingfisher reserves from Coriolis Energy Partners and Red Sky Resources.
The deal, expected to close in mid-February, encompasses about 230 producing wells.
“These acquisitions are more than self-funding, meaning they are expected to generate sufficient free cash flow to both participate in future wells and to contribute excess free cash flow back to the company to be used for dividends, debt repayment, and other corporate uses,” Chief Executive Kelly Loyd said.
Evolution expects to fund the transactions from cash on hand and borrowings from its senior credit facility with MidFirst Bank. As of Dec. 31, Evolution had $8 million in cash on hand and no outstanding borrowings.
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