Background/Challenges
A private equity backed team of 2 executives had been working with NTG Auburn for nearly one year establishing asset management models to engage when and if the team successfully purchased an operating property.
The team was able to negotiate directly with a seller (no bid process) for 500 wells, 21,000 BOE/day in the Midland Basin.
At that point, the team had not set up a legal entity to buy the properties and the negotiated PSA had penalties if the team could not take over full operations on property closing which was 90 days away.
Results/Conclusions
NTG Auburn was prepared to provide the legal, regulatory, environmental, safety, human resource and payroll, IT, planning and operations support described more fully in the next pages prior to signing the Purchase and Sales Agreement (“PSA”), post the PSA and prior to closing, and post-closing support.
The acquisition closed on time, saving the client significant dollars rather than requiring a transitional agreement with the seller. Transition of staff from NTG to the client began 90 days after closing with NTG still providing functions that are only needed part-time.
