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Acacia Research Expands Oil and Gas Investments Through Benchmark Energy’s Transformative Acquisition in the Western Anadarko Basin
Acquisition Anticipated to Add Over 470 Operated Producing Wells Across Approximately 140,000 Net Acres with Expected Annualized Asset-Level Cash Flows of
About this update from Acacia Research Corporation
[{"type":"text","content":"\nAcquisition Anticipated to Add Over 470 Operated Producing Wells Across Approximately 140,000 Net Acres with Expected Annualized Asset-Level Cash Flows of Approximately $45 Million\n\n\n NEW YORK--(BUSINESS WIRE)--\nAcacia Research Corporation (Nasdaq: ACTG) (“Acacia”) today announced that its majority owned subsidiary, Benchmark Energy II, LLC (together with its subsidiaries, “Benchmark”), has entered into a Purchase and Sale Agreement (“PSA”) to acquire certain upstream assets and related facilities (the “Assets”) in Texas and Oklahoma from a private seller (such transaction, the “Acquisition”). The Acquisition is anticipated to expand the Benchmark portfolio, adding approximately 140,000 net acres and approximately 470 operated producing wells in the prolific Western Anadarko Basin throughout the Texas Panhandle and Western Oklahoma.\n\n\nAcquisition Highlights\n\n\n\nExpanded operated position throughout the core of the Western Anadarko Basin with over 110,000 net acres, 100% of which is held-by-production, with an additional 27,000 net acres in the emerging Cherokee play\n\n\n\nLiquids-rich, low-decline, mature production base of approximately 6,000 barrels of oil equivalent per day across approximately 470 operated wells\n\n\n\nSignificant opportunity set of field enhancement opportunities including artificial lift optimization, workovers and return-to-production projects\n\n\n\nMaterial exposure to the emerging Cherokee development play via operated acreage and non-operated arrangements with best-in-class operators\n\n\n\nBenchmark anticipates hedging a significant amount of production\n\n\n\nThe Acquisition expands upon Acacia’s strategy within its Benchmark subsidiary of driving returns through a focus on cash flow. This is accomplished through acquiring predictable and shallow decline, cash-flowing oil and gas properties whose value can be enhanced via a disciplined, field optimization strategy, with risk managed through robust commodity hedges and low leverage.\n\n\nKirk Goehring, Benchmark’s Chief Executive Officer, commented: “The acquisition of these assets represents a transformative moment in Benchmark Energy’s history and an important next step in our partnership with Acacia and McArron. This unique asset is expected to deliver attractive, mature production with multiple drivers to enhance value. After closing...