Benchmark Energy Closes the Acquisition of the Oil and Gas Assets of SK Nemaha and SK Plymouth and the Establishment of a Note Purchase Agreement With Cibolo Energy Partners
AUSTIN, Texas, March 9, 2021 (Newswire.com) - Benchmark Energy, LLC ("Benchmark" or the "Company") announced today that the Company has completed the acquisition of all the oil and gas assets, including approximately 77,000 net acres located in the STACK play within Grant, Garfield and Kingfisher counties of Oklahoma (the "Properties"), from SK Nemaha, LLC and SK Plymouth, LLC (collectively "SK").
The acquired SK assets produced approximately 3,600 net barrels of oil equivalent per day in January 2021, which consisted of approximately 60% oil and NGLs. The acreage is 98% held-by-production. Approximately 87% of the wells will be operated by Benchmark in mature fields with strong cash flow as well as significant development potential from PDNP and PUD opportunities. The Properties also include an integrated gathering and saltwater disposal system, which allows for efficient field management and reduced lease operating expenses.
The deal was funded through a combination of debt and equity. The Company entered into a Note Purchase Agreement with Cibolo Energy Partner, LLC, as Administrative Agent, pursuant to which the Company may borrow up to $45 million to partially fund the acquisition of the SK Properties as well as potential future transactions.
Benchmark's existing owner, McArron Partners, L.P., provided the equity to fund the balance of the SK Properties.
About Benchmark Energy
Benchmark Energy, LLC is an independent oil and natural gas company whose business is to engage in the acquisition and production of conventional and unconventional oil and gas resources focusing on selected plays within the Anadarko Basin of Western Oklahoma.
Craig Fleming, 512-920-0313
Chief Executive Officer
About McArron Partners
McArron Partners, L.P. is the investment arm of the Jones family office. McArron's CEO is Jonny Jones, founder of Jones Energy, who currently serves on the Board of Directors for ETX Energy and is past Chairman of the Texas Oil & Gas Association and U.S Oil & Gas Association. McArron deploys its capital in a mix of global public and private investments. The Jones family has supported energy entrepreneurs for more than five decades.
About Cibolo Energy Partners
Cibolo Energy Partners, LLC is a Houston-based firm focused on investment opportunities in "lower, middle-market" oil and gas companies in North America.
Source: Benchmark Energy, LLC