FORT WORTH, Texas, June 16, 2014 /PRNewswire/ — Energy & Exploration Partners, Inc. (“ENXP”) announced today that it has reached an agreement to acquire 18,300 net acres in Houston and Madison Counties, Texas from TreadStone Energy Partners, LLC (“TreadStone”), a Kayne Anderson Energy Funds portfolio company, for approximately $715 million, subject to customary purchase price adjustments. As of June 7, 2014 the acquisition includes net production of 8,430 barrels of oil equivalent per day (82% oil), 30 square miles of 3-D seismic data and a three-well salt water disposal system. The effective date of the TreadStone acquisition is April 1, 2014 and is expected to close before the end of July.
The TreadStone acquisition complements ENXP’s current East Texas portfolio. ENXP has recently completed the Sundance #1, a vertical Buda-Rose completion in Madison County, Texas and is encouraged by the volume of oil and gas currently flowing up tubing. The TreadStone acreage lies on trend and just east of the ENXP position and has been predominately developed vertically in the Lower Cretaceous Buda-Rose via multizone completions. ENXP is acquiring 36 net producing wellbores, 136 proved undeveloped drilling locations based on 80-acre spacing and up to 250 Buda-Rose drilling locations based on 40-acre spacing. The TreadStone acquisition is 100% operated with an average working interest of 89.6% and an average royalty burden of 16.6%. The acquired assets currently have 32.8 Mmboe of proved reserves based on third-party engineering.