Contango Outbids Mach Resources For Oklahoma’s White Star

摘要

CONTANGO OIL & GAS Co.outbid Tom Ward’s Mach Resources LLC in an Oklahoma bankruptcy auction in September to win the assets of White Star Petroleum LLC for $132.5 million,Contango said.The acquisition is the second focused on Oklahoma and,if both deals close,will gather an acreage position of more than 450,000 acres for a cost of roughly $155 million.On Sept.27,Contango said it entered an agreement to acquire the assets of White Star and certain affiliates as part of the Oklahoma City-based company’s Chapter 11 bankruptcy process.White Star,formerly American Energy-Woodford LLC,was founded by the late Aubrey McClendon as an Oklahoma-focused E&P business.Ward and McClendon co-founded Chesapeake Energy Corp.Mach and partner Bayou City Energy Management LLC bid on the White Star assets on Sept.12 and executed an asset purchase and sale agreement.However,at the bankruptcy court hearing,Contango proposed a transaction on”substantially the same terms”as Mach,but at a higher purchase price.Mach declined to make a matching or higher offer,according to bankruptcy documents.