Evolution Petroleum Announces $43.5 Million Additions to Assets
Houston, Texas - January 12, 2022
Evolution Petroleum, a leading company in the oil and gas industry, is excited to announce a significant development in its portfolio. The company has recently signed a deal worth $43.5 million that will contribute approximately 1,550 barrels of oil to its assets.
This strategic move involves the acquisition of non-operated oil and natural gas assets located in the South Central Oklahoma Oil Province and the Sooner Trend Anadarko Canadian Kingfisher reserves. The assets are being purchased from Coriolis Energy Partners and Red Sky Resources, two reputable entities in the industry.
The deal, expected to be finalized in mid-February, includes a total of 230 producing wells. These acquisitions are projected to be more than self-funding, generating substantial free cash flow. As a result, Evolution Petroleum will have the opportunity to participate in future wells and utilize excess free cash flow for dividends, debt repayment, and other corporate purposes.
Chief Executive Officer, Kelly Loyd, expressed his enthusiasm about the transactions, stating, "These acquisitions represent a remarkable opportunity for Evolution Petroleum. Not only are they expected to be financially advantageous, but they also align perfectly with our long-term growth strategies."
In terms of funding, Evolution Petroleum plans to utilize its cash on hand and borrowing from its senior credit facility with MidFirst Bank. As of December 31, 2021, the company had $8 million in cash on hand and no outstanding borrowings.
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