OKLAHOMA CITY, April 20, 2016 /PRNewswire/ -- American
Energy – Woodford, LLC today announced that, effective March 25, 2016, the company changed its name to
White Star Petroleum, LLC ("White Star"). As originally intended
and previously announced by White Star's sponsor, The Energy and
Minerals Group ("EMG"), White Star will complete its transition to
a standalone company, fully independent of the American Energy
Partners, LP ("AELP") platform (the "Separation"), during the
second quarter of 2016. On February
26, 2016, as a critical step of the Separation, the Board of
Managers appointed Elliot J.
Chambers as Chief Executive Officer, in addition to his role
as Chief Financial Officer, and promoted Joseph D. Craig to Chief Operating Officer from
his previous role as Vice President of Operations.
Mr. Chambers commented, "We are pleased to announce the
transition of White Star to a separate, standalone company.
This separation has been a strategic objective of our business
since the company was founded in 2013, and we look forward to
bringing it to fruition as quickly as possible during the second
quarter. We appreciate the support and guidance that we have
received from EMG, and the assistance the AELP platform has
provided since our formation."
White Star also announced today it has signed a definitive
agreement to purchase certain Mississippi Lime and Woodford Shale assets from Devon Energy
Corporation (NYSE: DVN) for $200.0
million. The transaction is subject to customary
purchase price adjustments, terms and conditions, and is expected
to close in the second quarter of 2016. The acquired assets
include approximately 210,000 largely contiguous net acres which
immediately offset White Star's acreage in Central Northern Oklahoma. The acquired
acreage is primarily located in Payne, Lincoln, Logan and Garfield Counties in Oklahoma, with most of the position held by
production. Net production from the acquired assets in the first
quarter of 2016 averaged 12,800 barrels of oil equivalent ("BOE")
per day from approximately 555 operated and non-operated
Mississippi Lime and Woodford Shale
horizontal wells.
"With the acquisition of Devon's Mississippi Lime and
Woodford Shale assets, White Star
has doubled its production and acreage footprint in Central Northern Oklahoma," Mr. Chambers
continued. "This acquisition will be significantly accretive
to production, liquidity, reserves, and leverage metrics, and will
allow White Star to continue to leverage our core competency in
low-cost Mississippian and Woodford resource development.
Furthermore, upon signing, we executed hedges covering a
substantial portion of acquired PDP production, providing stability
to our cash flows while preserving upside. We are very
appreciative of the continued support that our equity sponsors have
shown for the business, and look forward to delivering on our
disciplined operating plan and creating long-term value for all of
our stakeholders."
Advisors
White Star's legal advisor for this transaction is Porter Hedges
LLP.
About White Star Petroleum, LLC
White Star Petroleum,
LLC, formerly American Energy – Woodford, LLC, is an independent
oil and natural gas company focused on the acquisition,
development, operation and production of unconventional oil and
natural gas properties located in the Mississippi Lime and
Woodford Shale plays in Central Northern Oklahoma.
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SOURCE White Star Petroleum, LLC