Tulsa-based Eagle Energy properties bought by Midstates Petroleum
BY ROD WALTON World Staff Writer
Monday, August 13, 2012
Tulsa-based Eagle Energy LLC is selling all of its Oklahoma and Kansas oil and gas properties to a Houston firm for $325 million and 325,000 shares of preferred stock, the companies announced Monday.
Midstates Petroleum Co. is buying 114 gross producing wells over 103,000 net acres that Eagle operates in the Mississippi Lime and Hunton formations. Eagle CEO Steve Antry founded the Tulsa company three years ago and built up its acreage quickly.
Under the acquisition terms, Eagle will operate the properties for a one-year transition period.
“We are pleased to become a part of a growing Midstates organization where we will continue to deliver value for shareholders,” Antry said in a statement. “This transaction represents a significant milestone for both the employees of Eagle and our investors.”
Eagle will continue intact after the sale. Antry’s group, started with seed funding from equity firm Riverstone Holdings LLC, bought up 84,000 acres in the now popular Mississippian Lime of northern Oklahoma and southern Kansas, with its remaining 19,000 acres in the Hunton play in Oklahoma.
The Eagle properties hold proved reserves of about 37 million barrels of oil equivalent. More than half of that is in oil and natural gas liquids.
Before founding Eagle, Antry was founder and CEO of Beta Oil and Gas, which he merged with Petrohawk Energy LLC in a $60 million deal eight years ago.