American Energy Closes the Acquisition of Three Oil and Gas Operators
American Energy is pleased to announce that it has closed the previously announced $10.846M acquisition of three O&G Operators in PA & WV
ALLENTOWN, PA, July 06, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- American Energy Partners, Inc. (“American Energy”) (PINK: AEPT), a diversified energy company, is pleased to announce that it has closed the previously announced $10.846M acquisition (the “Acquisition”) of three existing oil and gas operators in Western Pennsylvania and West Virginia known as Washington Energy, Freedom Energy, and Oil & Gas Management, effective July 1, 2021. Total consideration for the Acquisition was funded through a combination of $5.006M in conventional debt and $5.84M in equity.
Acquisition highlights include:
- Represents an increase in annualized revenue of approximately $2M beginning in Q3 2021 based on current strip pricing;
- Low risk, low-cost stabilized production increase of 1,250 mcfe per day from 467 wells including midstream assets;
- 19 Bcfe increase to net reserves;
- 695 acres of 100% owned surface and oil and gas rights in Pennsylvania and West Virginia held by production;
- No drilling commitments or obligations;
- Vertical integration of in-house production and midstream operations.
American Energy’s CEO Brad Domitrovitsch stated, “We are very pleased with the transaction; it furthers our commitment to accelerate revenue, diversify within the energy sector, and to acquire high quality energy businesses with strong management. We welcome all of the employees into our family of Companies.”
While Josh Hickman, a fifty percent owner of the oil and gas businesses acquired, is on American Energy’s board of directors, the transaction was approved by the Board of Directors after determining, in good faith, that the acquisition is in the best interests of American Energy since the acquisition will immediately contribute to top-line revenue.
American Energy Partners, Inc. (AEPT)
American Energy Partners, Inc. is a diversified energy company. Through its various subsidiaries, the Company engages in water treatment and distribution, oil and natural gas production, geotechnical consulting services, and energy education.
For additional information, visit: American Energy Partners, Inc.
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