Houston-based New Height Energy said last week it acquired about 500 producing oil and gas wells from an undisclosed seller in Midland Basin with net production of about 4,000 barrels of oil equivalent per day. The privately-held company said it also secured equity commitments from current owners and a consortium of family offices led by United Beren Energy as well as a $300 million revolving loan to fund its Permian Basin operations and additional transactions. Texas Capital is lead arranger for the loan.
Jon Benavides, CEO, said April 1 the transaction “validates our thesis to acquire producing assets with the goal of unlocking significant value. We look forward to integrating these properties into our portfolio and continuing our growth strategy.”
Oil & Gas Journal said the newly acquired assets, primarily in Howard and Martin counties, increased New Height’s total well count to about 700 in Midland Basin, central basin platform and eastern shelf with 5,000 boed. Scott Trackwell, CFO, told Journal, “We have a robust pipeline of potential target acquisitions that could increase our production significantly within the next 12 months.” Journal said New Height has not drilled any of the wells it operates, and its current focus remains on adding wells that already are producing or can be returned to production.