DALLAS, Dec. 1, 2016 /PRNewswire/ -- Energy Hunter Resources, Inc., an exploration and production company with a balanced portfolio of oil and natural gas properties headquartered in Dallas, Texas ( www.energyhunter.energy), announced today that it has agreed to acquire an undivided ownership interest in certain oil producing properties located in Reagan County, Texas from an undisclosed seller. The working interest being acquired represents a 17.5% interest in an eighty acre block that is currently held by production. The effective date of the transaction is December 1, 2016. Energy Hunter Resources, Inc. anticipates that the purchase of the Midland Basin properties will close in January 2017, subject to due diligence and standard title review.
Gary C. Evans, Chairman & CEO of Energy Hunter Resources, Inc., said, "This will be our third acquisition for Energy Hunter in the past six months and our second one located in the Permian Basin. While the size of the property acquisition is relatively small, it leverages our way into an existing area of the Midland Basin that has a significant amount of future drilling activity planned and also has a well known and active Permian Basin operator, Parsley Energy, Inc. A two mile horizontal well was drilled and completed in July 2016 by Parsley Energy, Inc. immediately to the West of this property. The well tested at an initial flow rate of 1,860 BOED (84.5% liquids)." Evans continued, "We have now begun marketing our IPO roadshow. As overall service costs continue at record low levels, technology improvements are continuing to increase ultimate recoveries, commodity prices remain stable and are slowly increasing, and the regulatory environment for oil and gas companies becomes more hospitable, we don't believe there could be a better time for a debt-free oil and gas company to go public. Smaller bite size asset prices are still low and the proceeds generated from the initial public offering will enable Energy Hunter Resources to continue building a premier Permian Basin and Eagle Ford Shale oil and gas company for our shareholders."