US Energy Corp., Denver, plans to acquire oil and natural gas producing properties targeting the Bakken formation of North Dakota form APEG I Partners.
The exclusive, nonbinding memorandum of understanding includes all of APEG’s interest in 67 wells concentrated in Williams and McKenzie counties—assets “highly complementary” to US Energy’s existing portfolio in the state, the company said. Current production is 400 boe/d across 1,600 net acres with 1.1 million boe of proved developed reserves, 79% of which is oil.
US Energy said the deal will create additional opportunities for development and acreage swaps that would permit it to continue consolidating its leasehold position in the area.
Total consideration is $17.8 million—a combination of cash, issuance of common and preferred stock, and the assumption of APEG’s outstanding commodity derivatives. US Energy plans to establish an $8-million revolving credit facility.
Closing is conditioned on debt and equity financing, Nasdaq approval, and stockholder approval at a special meeting scheduled for December.
