Constellation Energy Partners has agreed to acquire certain coalbed methane properties from Newfield Exploration Mid-Continent Inc. for $128 million.
The properties are located 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 coalbed methane properties in the Cherokee Basin,” Felix Dawson, CEO of Constellation
Energy Partners, said in a statement. “The Newfieldproperties 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 approximately 80,000 net acres and about 350 miles of pipeline gathering systems.
Constellation Energy Partners is partly owned by Constellation Energy, focused on the acquisition of oil and natural gas properties. The company posted revenues of $19.3 billion in 2006.
