Deals this week: Lotus Midstream, WildHorse Resource Development Corporation, Kuwait Energy

Lotus Midstream has secured a $400m equity commitment from EnCap Flatrock Midstream (EFM) and the Lotus management team.

EnCap Flatrock Midstream is a private equity firm based in the US, while Lotus Midstream, also based in the US, is a crude oil logistics provider.

The transaction will strengthen Lotus Midstream’s financial position.

Vinson & Elkins was appointed as the legal advisor for the transaction by Lotus Midstream.

US-based oil and gas company WildHorse Resource Development Corporation plans to divest its natural gas assets located in North Louisiana, US, to a third party for $252m.

The assets cover 90,000 net acres and include 473 operated wells.

WildHorse Resource Development plans to use the divestment proceeds to repay its debts.

Guggenheim Securities was appointed as the financial advisor and Locke Lord as the legal advisor for the transaction.

Kuwait Energy has signed a farm-out agreement with Dragon Oil to divest 15% of its interest in Block 9 located in the Basra province of Iraq.

The company will divest 8.57% interest in the block for $100m and 6.43% of non-controlling interest.

The current owners in the block are Kuwait Energy (60%, operator), Dragon Oil (30%), and Egyptian General Petroleum Company (10%), which will change to Kuwait Energy (45%), Dragon Oil (45%) and Egyptian General Petroleum (10%), following the completion of the deal.

Kuwait Energy is an oil and gas company based in Kuwait, while Dragon Oil is a UAE-based subsidiary of Emirates National Oil Company.

The deal is expected to strengthen Dragon Oil’s oil and gas asset base in Iraq.

Just Energy Group plans to raise C$100m ($79.44m) through a bought deal public offering of convertible unsecured senior subordinated debentures priced at C$1,000 ($794.45) a debenture.

The debentures carry a rate of 6.75% and are due March 2023.

The underwriters will be granted an over-allotment option to purchase C$15m ($11.92m)-worth additional debentures.

Based in Canada, Just Energy is a retail energy service provider.

The company plans to use the proceeds towards the redemption of its 5.75% unsecured subordinated convertible debentures, due September 2018.

US-based oil and gas company Torchlight Energy Resources has raised $4.5m through the private placement of 12% unsecured promissory notes, due April 2020.

The company plans to use the funds raised to repay its debts and for general corporate needs.

Delek US Holdings has signed an agreement with a subsidiary of Andeavor to sell its asphalt terminals located in California, Arizona and Nevada for $75m.

The deal includes the sale of four asphalt terminals located in Bakersfield, Mojave and Elk Grove in California and one in Phoenix, Arizona, as well as a 50% interest in  Paramount-Nevada Asphalt Company, which owns an asphalt terminal located in Fernley, Nevada.

Delek US Holdings is a US-based downstream company, while Andeavor, also based in the US, is involved in petroleum refining, logistics and marketing.

Delek US will use the sale proceeds for its capital allocation programme.

US-based oil and gas company WildHorse Resource Development Corporation (WRD) has signed an agreement to purchase oil and gas assets located in Lee County, Texas, US, for $19.3m.

The assets include both producing and non-producing properties covering 17,453 net acres.

The transaction will strengthen WRD’s oil and gas asset portfolio in Texas.

Petrogress has signed a memorandum of understanding with A&E Petrol Nigeria (A&E Petrol) through its subsidiary Petrogress International (PIL) to form a joint venture company named P&A Nigeria Oil Co. (PANOC).

The new company will be involved in the supply, transportation and distribution of oil and gas in Nigeria.

PIL and A&E Petrol will hold 55% and 45% interests, respectively, in the new company.

Based in the US, Petrogress is an owner and operator of a fleet of tankers, while A&E Petrol Nigeria is a Nigerian oil and gas company.

The transaction will expand Petrogress’ operations in Nigeria.