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Evolution Petroleum to Buy Midland Basin Mineral, Royalty Interests for $16 Million

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Evolution Petroleum (EPM) said Tuesday it agreed to buy mineral and royalty interests in the Midland Basin portion of the Permian Basin from a private seller for about $16 million.

The deal is expected to close on or about Aug. 21, with an effective date of Aug. 1.

The interests span about 3,420 net royalty acres across Reagan, Upton, Glasscock, Midland, and Martin counties, Texas, including 832 producing wells and estimated current production of about 210 barrels of oil equivalent per day, the company said.

Evolution plans to fund the purchase using proceeds from a concurrent public stock offering, cash on hand, and borrowings under its revolving credit facility.

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