Mach Natural Resources has agreed to acquire certain oil and gas assets in the US from privately held Paloma Partners IV, for a cash consideration of $815m.
As part of the agreement, Mach will acquire stakes in oil and gas properties, rights and related assets located in certain counties in the Anadarko Basin, Oklahoma.
The properties are located in Blaine, Caddo, Canadian, Custer, Dewey, Grady, Kingfisher and McClain Counties in Oklahoma.
Mach expects the oil and gas assets to boost its existing output of around 65,000boepd by about 32,000boepd, reports Reuters.
With reserves of 75 million barrels of oil equivalent, these assets cover around 62,000 net acres in the Anadarko Basin.
Paloma Partners IV is a limited liability company backed by EnCap Investments and its affiliated companies.
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Subject to customary terms, conditions and closing price adjustments, the transaction is expected to close on 29 December 2023.
In a press statement, Mach said: “Acquisition is accretive to both total cash available for distribution and expected cash distribution per unit.”
Kirkland & Ellis is acting as legal advisor on the transaction for Mach.
Last month, Mach Natural Resources said it has launched an initial public offering (IPO) of 10,000,000 common units, which represent limited partner interests in the company. Each common unit in IPO is priced at $19.
In a press statement, Mach said: “Mach will also grant the underwriters an option to purchase up to an additional 1,500,000 common units at the initial public offering price, less underwriting discounts and commissions.”