American Patriot acquires Foothills, Magnolia, Burnett assets in $US18.2m deal

Amero-Australian company American Patriot Oil and Gas has acquired several oil and gas assets in Texas for $US18.2 million ($24.7 million).

The company will acquire Foothills Resources in the Gulf Coast and assets from Magnolia Petroleum and Burnett Petroleum in South Texas in two separate deals. The company will pay $US15 million for Foothills and $US3.2 million for Magnolia and Burnett respectively.

A further $US2.3 million will be spent to acquire the Peak Energy asset that the company announced it was purchasing in February 2018, bringing the total spend to $US20.5 million. The combined estimated worth of the assets is valued at $US48 million.

The acquisition (including Peak Energy) represents an additional 6.5 million barrels of oil equivalent (6.5MMBoe) at a net production rate of 550 barrels per day for the company. In turn, this represents an additional net cash flow of $US6 million per year for the burgeoning company at current oil prices.

Commenting, American Patriot chief executive officer Alexis Clark said the development would see the company become the most significant operator in the region and that market response had been overwhelming.

“Our capital raising was heavily oversubscribed, creating an opportunity to take more”, he explained, “but we strategically chose not to, instead focusing on creating shareholder value.

“The production potential and the reserves base of the acquired assets will shift American Patriot into a significant explorer and producer.”