Edge Petroleum Adds Wells to Previously Announced Acquisition; Raises Value of Deal to $385Madmin
Independent energy company Edge Petroleum Corp. on Tuesday said it would acquire additional wells in southeast and south Texas for $65 million as part of a previously announced transaction with a private seller.
The extra wells would bring the total value of the deal to $385 million from $320 million and raise Edge Petroleum’s net well count to 84 wells from 72 wells. It would also increase the company’s average working interest to 60 percent from 50 percent. Working interest is an operating interest burdened with the costs of development and operation.
Edge Petroleum estimated that the additional assets contain about 21 billion cubic feet equivalent in reserves and a daily production rate of 7.1 million cubic feet equivalent, which is about 86 percent natural gas.
Edge Petroleum said it still expects the deal to close by the end of January.