Constellation Energy Partners has agreed to acquire certain coal bed methane properties from Newfield Exploration Mid-Continent Inc. for $128 million.
The properties are in the Cherokee Basin in Oklahoma, and the acquisition is expected to close by the end of September. The buy establishes Constellation Energy Partners as the second-largest producer in the Cherokee Basin.
“This acquisition complements and enhances our two previous acquisitions of coal bed methane properties in the Cherokee Basin,” Felix Dawson, chief executive officer of Constellation Energy Partners, said in a statement.
“The Newfield properties are strategically located relative to our existing assets and provide further opportunities for operational strategies.”
The properties will provide more than 600 low-risk, low-cost drilling and recompletion opportunities on about 80,000 net acres and about 350 miles of pipelinegathering systems.
Constellation Energy Partners is partly owned by Constellation Energy and focuses on the acquisition of oil and natural gas properties. The company posted revenues of $19.3 billion in 2006.
