Background/Challenges
An international firm’s US subsidiary had a large non-operating position but had never been the operator of record in the United States. The firm’s management worked with NTG Auburn for nearly one year establishing asset management models to engage when and if the team successfully purchased an operated property.
The team was able to win a bid sale for 25 gas wells, 200 million cubic feet per day in the southern Eagle Ford which included an ongoing drilling campaign.
At that point, the negotiated PSA included penalties if the team could not take over full operations on the property upon closing plus be prepared to t ake over the current capital campaign within 60 days.
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 transition agreement with the seller. NTG Auburn’s team successfully took over the current one-rig program from the Seller, drilling and completing the new wells on-time and on-budget. The client was able to hire new staff at their own pace as NTG Auburn provided on-call staff for all the initial functions. Today, NTG Auburn and NTG Environmental provide those functions that do not require a full-time equivalent employee or staff.
Eighteen months later, our client acquired a new property in another basin and asked NTG Auburn to provide similar services during the transition of that property
