July 29, 2019
BCE Mach II LLC says it’s purchased from an unnamed seller some producing properties in Hemphill and Roberts counties, Texas, along with properties in Beckham, Custer, Dewey, Roger Mills and Washita counties, Oklahoma.
The company said it’s also made a separate purchase of producing properties across seven counties in Texas and 32 counties in Oklahoma.
Closing on both sets of acquisitions is expected by the end of September of this year.
BCE-Mach II is a joint venture between Oklahoma City’s Mach Resources LLC and Houston-based private equity firm Bayou City Energy Management LLC.
Bayou City Energy founder and Managing Partner William McMullen noted that “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
“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).”
“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.”