Liberty Energy announced that it has acquired four oil and gas producing leases at Baylor county in Texas.
Under the deal, the company has acquired 1,038 acres with 17 oil wells, four injection wells and related surface production equipment.
Before any additional cleaning or remedial work is performed, average production of 3-4bopd is anticipated from operating wells.
With expectations based on historical initial production rates of between 15-20bopd on new wells, the leases are estimated to contain a minimum of 15 and probably up to 30 infill drilling locations.
Liberty Energy CEO Arthur Roy said the company has restructured the original proposed all stock transaction for a low stock issuance with a long term seller financing structure to minimise dilution to firm’s shareholders.
"We are very pleased to have restructured the original proposed all stock transaction, for a low stock issuance with a long term seller financing structure, to minimize dilution to Liberty shareholders," Roy added.