US firm Sanchez acquires 50% interest in Carnero Processing
US-based Sanchez Production Partners (SPP) has completed the previously announced acquisition of 50% interest in Carnero Processing from Sanchez Energy for approximately $80m.
In conjunction with the closing, Sanchez paid $55.5m and assumed remaining capital commitments to Carnero Processing, estimated at $24.5m.
SPP CEO Gerry Willinger said: “Having now closed the two transactions announced in October, we have successfully executed and financed transactions with Sanchez Energy for a total value of nearly $600m.
“We are excited to be further aligned with Sanchez Energy and its plans for development in South Texas, and look forward to capitalising on additional opportunities to grow alongside this leading Eagle Ford operator over time.”
SPP has also completed the previously announced acquisition of certain producing oil and natural gas assets located in South Texas, US, from Sanchez Energy for approximately $27m.
The company is expected to have $148m in debt outstanding under its credit facility, which has a borrowing base of $205.1m.
Also included are outgoing letters of credit totalling about $15m related to the funding of remaining capital commitments to Carnero Processing and Carnero Gathering.
SPP focuses on the acquisition, development, ownership and operation of midstream and production assets in North America.
The company owns oil and natural gas gathering and processing system in the Eagle Ford Shale in Dimmit, Webb and La Salle Counties, Texas.
It also owns producing reserves in the Eagle Ford Shale in South Texas, the Gulf Coast region of Texas and Louisiana, and across several basins in Oklahoma and Kansas.