OKLAHOMA CITY–(BUSINESS WIRE)–As previously announced, Mach Resources LLC (“Mach”) and Bayou City Energy Management LLC (“BCE”) formed BCE-Mach II LLC (“BCE-Mach II”) to pursue low-risk, high cash flowing oil and gas properties with drilling inventory in the Western Anadarko Basin spanning across Western Oklahoma and the Texas Panhandle. BCE-Mach II LLC is the second collaboration between Mach and BCE. The first partnership, BCE-Mach LLC (“BCE-Mach”), continues to own, operate and acquire properties in the Mississippi Lime.
Today, BCE-Mach II announces it has signed a Purchase and Sale Agreement to purchase producing properties in Beckham, Custer, Dewey, Roger Mills and Washita Counties, Oklahoma and Hemphill and Roberts Counties, Texas from an undisclosed seller. Closing on this first acquisition is subject to customary conditions and is expected to occur in September 2019.
Additionally, in a separate transaction with a different undisclosed seller, BCE-Mach II announces it has signed a second Purchase and Sale Agreement to acquire producing properties across 32 counties in Oklahoma and seven counties in Texas. Closing on this second acquisition is subject to customary conditions and is expected to occur in September 2019.
“Mach looks forward to continuing its partnership with BCE via BCE-Mach II with a focus on acquiring proven cashflow using low leverage as opposed to the industry standard of solely relying on growth at all costs through the drill bit,” said Tom L. Ward, CEO of Mach. “Within this platform, we will expand our strategy into the Anadarko Basin starting with these two initial acquisitions. Within both partnerships, we will be operating nearly 1,800 wells and generating over $150 million of annual cashflow with the strategy of investing ~60% of cashflow to maintain a steady EBITDA and production profile.”
“Upon closing these two transactions, the two BCE-Mach partnerships will have closed on five distinct transactions spanning the Mississippi Lime, STACK, MERGE, SCOOP, and Western Anadarko Basins,” said William McMullen, BCE Founder and Managing Partner. “In total, these assets represent 365,000 net acres which are 98 percent held-by-production and producing ~30,000 net boepd (49 percent liquids). We believe that excellence in operations combined with an under-levered balance sheet and future sponsorship support will continue to drive our ability to be a regional consolidator. And we look forward to achieving this end with Tom Ward’s team.”