Tulsa-based Citizen Energy announced that it has entered into a definitive Purchase and Sale Agreement with an undisclosed seller.

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Map of Company Acreage (Graphic: Business Wire)

The Purchase and Sale Agreement provides that Citizen will acquire ~8,000 BOEPD of production (58% gas and 25% NGLs), 97 operated wells, 400 non-op wells and 28,000 net acres (94% HBP) which lies largely within Citizen’s existing footprint. The contiguous nature of the acquisition provides an ideal opportunity for infrastructure connectivity and development continuity. The acquisition will have a July 1, 2021 effective date.

Pro forma for the acquisition, Citizen will have net daily production of ~74,000 BOEPD, interests in over 1,700 wells and over 230,000 net acres across the Mid-Continent. A headline purchase price of $153MM will be funded entirely out of existing liquidity within Citizen’s RBL facility, which was upsized to $850MM prior to the transaction. Citizen expects the acquisition to be accretive to shareholder returns and crucial to building and maintaining its momentum as the largest private operator in Oklahoma.

Closing is expected to occur in the fourth quarter of 2021 and is subject to customary conditions and purchase price adjustments.

Schaper Energy Consulting acted as technical advisor and Shearman & Sterling served as legal counsel for Citizen Energy on the transaction.

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