Arabella to Shed Permian Wolfbone Properties for $47 Million
Multiples
Transaction Details:
Arabella Exploration, Inc. has entered into a Purchase and Sale Agreement with a third party buyer, dated as of July 1, 2015, and a letter agreement with McCabe Petroleum Corporation, dated as of April 15, 2015, pursuant to which Arabella will sell its ownership interest in certain of its properties for cash and properties with a potential value totaling approximately $47 million.
Pursuant to the agreements, the transactions will close simultaneously and Arabella will transfer its Locker State, Graham, Woods, Jackson and Emily Bell prospects to the Buyer and will receive cash from the Buyer and certain properties from McCabe.
Arabella will receive the following in connection with the two transactions:
- $15 million in cash, subject to certain closing adjustments
- Producing property in the Southern Delaware Basin with net production of approximately 88 BOE/Day. Arabella estimates the value of this property to be approximately $6 million
- A participation agreement covering 20,000 undeveloped acres (gross and net) in the Midland Basin, valued by Arabella at approximately $1,000/acre or $20 million total
- An option to purchase approximately 1,000 net acres of royalty interests underlying the 20,000 acres in the Midland Basin valued by Arabella at approximately $3 million, net of the option cost
- The return of 1,003,597 of Arabella's ordinary shares and the rights to certain earn-out shares valued at approximately $3 million; the 1,003,597 shares will be canceled upon receipt (provided that such shares may be reissued in the event that Arabella does not drill at least one well on its new property within one year from the closing date)
Use of Proceeds
Pending agreement with the holders of its Senior Secured Notes, Arabella will repay $10 million of the $16 million outstanding. The remainder of the cash proceeds will be used for the development of properties, the repayment of other amounts owing and general corporate purposes.
Overview of Transition
The following chart summarizes the changes to Arabella's properties, production and capital structure as a result of the two deals:
(1) Includes ten wells currently producing on Arabella's back in acreage
(2) BOE/Day estimated pre-transaction production is for the six months ended June 30, 2015, post-transaction estimate includes new producing property; neither amount includes production from Arabella's back in acreage
Closing Timing & Conditions
Arabella is targeting and anticipates that the transactions will close on or about July 31, 2015. The closing of the transactions are subject to certain closing conditions.
Permian Deal Activity In Last 12 Months
Announced Date | Buyer | Seller | Deal Value($mm) | Location | Category |
---|---|---|---|---|---|
Jan-04-2024 | - | - | Click here | Texas | E&P |
Oct-11-2023 | - | - | Click here | Texas | E&P |
Aug-21-2023 | - | - | Click here | New Mexico | E&P |
Nov-16-2022 | - | - | Click here | Texas | E&P |
Sep-30-2022 | - | - | Click here | Texas | E&P |
Date | Deal Headline | Price | $/acre |
---|---|---|---|
Feb-12-2024 | Diamondback To Acquire Endeavor Energy In $26 Billion Transaction | - | - |
Jan-04-2024 | APA Corp to Acquire Permian Pure Player- Callon In All Stock Deal | - | - |
Dec-15-2023 | Fury Resources Takes Battalion Private In Transaction Worth $450 Million : Map | - | - |
Announced Date | Buyer | Seller | Deal Value($mm) | Location | Category |
---|---|---|---|---|---|
Oct-08-2014 | - | - | Click here | Texas | E&P |
Apr-23-2014 | - | - | Click here | Texas | E&P |
Mar-28-2014 | - | - | Click here | Texas | E&P |
Other McCabe Petroleum Deals
Announced Date | Buyer | Seller | Deal Value($mm) | Location | Category |
---|---|---|---|---|---|
Apr-05-2016 | - | - | Click here | Texas | E&P |
Aug-07-2014 | - | - | Click here | Texas | E&P |