February 10, 2018
Australia’s American Patriot Oil & Gas Co. is buying up individual East Texas assets in four counties.
The company said this week it has a purchase and sale agreement for conventional oil and gas wells in Harrison, Rusk, Upshur and Gregg counties that were included in a letter of intent signed in November.
The $2.5 million deal is expected to close by mid-March, with American Patriot estimating a potential for generation of more than $22 million in revenue based on $50 a barrel oil, which the company calls a conservative estimate considering the higher oil market price.
The properties include 38 wells producing 36 barrels of oil per day, the company said, and 440,000 cubic feet of natural gas per day.
The wells will require minimal workover costs and operation costs will be about $23 a barrel, with good access to refineries.
The company said the purchase doubles its reserves base.