American Standard Energy reported that the company has closed on its acquisition of producing oil and gas properties in the United States. The properties are located in various onshore basins and were purchased from a private oil and gas company.
American Standard Energy said the deal involved 72,300 net acres with current production of 250 barrels of oil equivalent (BOE) per day. The producing properties are located in the Permian Basin, Eagle Ford Shale, and Gulf Coast areas.
The properties also have extensive undeveloped acreage that the company will analyze for a future development program. The undeveloped acreage is located in the aforementioned basins as well as the Williston Basin, Niobrara, and Eagle Bine plays.
American Standard Energy purchased the properties from Geronimo Holding Corp., an oil and gas company that is controlled by Randall Capps. Capps is a director of American Standard Energy and is also the company’s majority stockholder.
American Standard Energy paid Geronimo Holding Corp. total consideration of $58.5 million for the properties. This included $10 million in cash, the issuance of five million shares of the company’s common stock, and a $35 million principal subordinated note.
For more information on the company, go to www.asenergycorp.com
Let us hear your thoughts below: