American Patriot to acquire oil and gas assets in Texas

Australian exploration and development firm American Patriot Oil and Gas has signed two separate agreements to acquire oil and gas assets in Texas, US.

Expected to increase the company’s EBITDA for the 2019 calendar year, the acquisitions include Foothills Resources and Magnolia/Burnett assets.

The transaction will see the addition of a total of 450boepd net of producing oil and gas assets to the company’s portfolio.

American Patriot noted that the assets will deliver an additional 5.6 million barrels of oil equivalent 2P reserves.

Along with the previously announced Peak Energy transaction, the new deals will result in an additional 6.5 million barrels of oil equivalent at a net production of 550boepd.

American Patriot Oil and Gas CEO Alexis Clark said: “This development will see American Patriot become the most significant operator in the region, with the potential to introduce a number of new acquisition targets to rapidly build scale and increase production.

“The production potential and the reserves base of the acquired assets will shift American Patriot into a significant explorer and producer.

“The Foothills asset is an important strategic acquisition located adjacent to our existing Lost Lake/Goose Creek assets.”

The Magnolia/Burnett deal involves the acquisition of non-operated assets in south Texas from Magnolia Petroleum Company and Burnett Petroleum for $3.2m, with the transaction anticipated to be closed next month.

Meanwhile, the $15m acquisition of Foothills Resources comprises assets in the Gulf Coast of Texas, which currently produce a net 300 barrels of oil a day (bopd) and have upside potential to increase output by more than 200bopd.