Independent oil and gas company Pennpetro has increased its working interest from 75% to 100% in the leasehold petroleum interests in the City of Gonzales licence in southwest Texas, US.
The transaction was carried out through Pennpetro’s US-based subsidiaries.
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The licence comprises the undeveloped central portion of the Gonzales Oil Field.
According to the contractual obligations within the joint operating agreement, the additional interest was purchased from existing working interest parties by crediting outstanding receivables.
Prepared prior to the original 50% interest acquisition, the Competent Person’s Report (CPR) stated that Pennpetro would have a working interest in the portfolio of petroleum mineral leases comprising 2,000Mbbl of oil and 1,000Mmcf of gas with the acquisition.
The earlier estimated interests are now increased to 4,000Mmbl and 2,000Mmcf of gas, respectively.
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By GlobalDataAccording to a CPR prepared in December 2017, it is estimated that the group’s previously undiscounted net revenue interest in the Gonzales petroleum leases was $62m.
As a result of the additional acquisition, it will now increase to $124m based on the same CPR out to 2031 priced at $55 a barrel.
The company commissioned the independent CPR on its oil and gas assets by William W Jackson (WWJ).
Pennpetro focuses on the production in the Gonzales Oil Field and maintains an operational office in the City of Gonzales.
The company also makes complementary asset acquisitions of target companies or respective businesses in the North American upstream petroleum industry.
