Energy & Exploration Partners is an independent exploration and production company focused on the acquisition, exploration, development and exploitation of conventional and unconventional oil and natural gas resources.
At the end of July, it owned approximately 92,828 net acres in three basins: the East Texas Basin (East Texas stacked play), the Permian Basin in West Texas and the Denver-Julesburg Basin in Wyoming.
The company’s primary area of focus is the East Texas stacked play, it owned 71,577 net acres at the end of July. This included the purchase of approximately 18,300 net acres for approximately $693 million in the Ft. Trinidad area, which had interests in 47 gross producing wells and 10 gross wells waiting on completion, a three-well salt water disposal system and approximately 30 square miles of 3D seismic. Since the purchase in mid-July to the end of August, five gross wells commenced drilling on the Ft. Trinidad acreage.
The Ft. Trinidad acquisition had total estimated proved reserves of 41,903 MBoe, 11,405 MBoe that were developed and 30,499 MBoe that were undeveloped.
The drilling capital budget is $160 million for the year ending in December, $244 million for the following year and $372 million for the year ending in December 2016.
Energy & Exploration Partners intends to use a portion of the net proceeds from this offering to repay in full the Chesapeake note, which had an outstanding principal amount of approximately $20.3 million at the end of June. It also intends to use the remainder of proceeds from this offering to fund a portion of its capital expenditure budget of $430 million from July 2014 through December 2015.
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