Energy & Exploration Partners has reached an agreement with TreadStone Energy Partners to acquire 18,300 net acres in Houston and Madison counties, Texas, for approximately $715 million. TreadStone is a Kayne Anderson Energy Funds portfolio company. The TreadStone acreage lies on trend and just east of the ENXP position and has been predominately developed vertically in the Lower Cretaceous Buda-Rose via multi-zone completions.
· 100% operated with an average working interest of 89.6% and an average royalty burden of 16.6%
· 30 square miles of 3-D seismic data
· 136 proved undeveloped drilling locations based on 80-acre spacing; up to 250 Buda-Rose drilling locations based on 40-acre spacing
· 1P reserves of 32.8 MMBOE
· 36 net producing wellbores
· Net production, as of 7-Jun-2014, of 8.43 MBOE/d (82% oil)
· Three-well salt water disposal system
Hunt Pettit, President and CEO of ENXP, commented: "With the combined assets, ENXP will have over 10 MBOE/d of net production and 72,000 net acres most of which is covered by 3D seismic data in the prolific East Texas Basin with its 5,000-ft thick hydrocarbon column of stacked pay. We expect to expand production significantly as we deploy a multi-rig drilling program across the entire asset to develop all prospective horizons and fully exploit our entire position."
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.