New Source Energy acquires Oklahoma oil and gas assets

US-based New Source Energy Partners has announced the approximately $13.4m acquisition of oil and gas assets from Scintilla in Oklahoma county, US.

New Source has paid $5m cash at closing, while the remaining $8.4m will be paid after the delivery of 414,045 common units of the partnership, which are expected to be delivered in November.

As part of the deal, the company has acquired working interests of 37.64% in 25 producing wells and related undeveloped leasehold rights in the Southern Dome field.

New Source has also agreed to pay an additional amount to Scintilla in the fourth quarter of 2014, based on improved average daily production from the acquired assets.

The assets produced around 383.5 barrels of oil equivalents a day in between May and July, including 34% oil, 15% NGL and 51% natural gas.

New Source Energy president and CEO Kristian Kos said that the acquisition of properties will create an opportunity to provide sustainable growth for the company’s unit holders.

"This acquisition extends our reach and adds mature, producing assets at an attractive rate of return that we anticipate will be accretive to our unit holders," Kos added.

New Source Energy is engaged in the development and production of onshore oil and liquids-rich portfolio in east-central Oklahoma.