BCM Energy Partners has purchased certain oil and gas leases in Caddo Parish, located in the US state of Louisiana.
The company’s subsidiary, BCM Energy Louisiana, has also completed a portion of a $4.5m private placement.
The company purchased 99 wells and all related equipment and leases from ET-LA for a total consideration of $405,000 in cash and $2,313,000 in a convertible note.
Current production is also included in the sale, which is effective August 2012, and is expected to be significantly enhanced through infield development.
The company said the convertible note is convertible into common shares of BCME at $2.90 per share or at 80% of the price per share in a public offering of at least $5,000,000.
As part of a $4,500,000 funding agreement, the company completed a $1,500,000 private financing from SBB Partners.
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By GlobalDataThe funds were used to acquire the Caddo Parish acquisition and related development in both of these newly acquired fields and University field.
US-based firm Dependable Oil and Gas has been engaged to operate the Caddo Parish fields.
BCM Energy Partners Dr. R. Gerald Bailey said Caddo has been producing for over 100 years in north-west Louisiana.
"We plan to invest funds to add production and proven reserves to our asset base and we have appointed a team of petroleum engineers and geologists to prepare a development plan to enhance and optimize our new holdings," Bailey said
"The addition of this field to our portfolio further demonstrates our ability to locate and acquire properties that can be further monetised with our resources."
