Dome Energy AB acquires strategic oil assets in the Illinois Basin
Dome Energy AB. (herein after “Dome” and/or “the Company”) has closed an acquisition of nine producing wells with 1,000 acres of productive land. Current production of ~80 BOPD and more than $8mm of proven reserves and additional probable reserves of $6mm, 10% discounted NPV. Dome estimates a yearly EBITDA contribution of more than $500,000 with current production. The acquisition price of $2mm and $2mm of development capital has been financed by Kvalitena AB, Gabrielsson Invest AB and Trention AB. Terms are favorable for Dome and the Company has the intent of adding the debt to their bank facilities later in the year. The assets have been acquired by a newly established American subsidiary of Dome.
Paul Morch, CEO: “We are excited to announce this small acquisition that we hope will have a big impact on our production and cash flow. We have reviewed these wells since 2014, and been impressed with the production development. The wells are all producing from around 4,000 ft, and have been developed in a grid system on each held lease. We have recognized ~27 undeveloped locations, and aim to start drilling the first four of these this summer. Each well is expected to add 50-100 BOPD and total recoverable oil of more than 50 MBO. A fully developed program will add more than 1,000 BOPD to Dome’s existing production. We aim to use this as a strategic investment to get a footprint into the region. If we see the good economics we expect from these wells, we aim to secure additional acreage which could allow a much larger scale drilling program. This acreage is considered development acreage with little to none geographical risk. The technical development of fracking methods has been slow, but we have seen up to 50% better effect on optimizations in the last three years. We will revert with more information once we have secured contractors for our drilling program.”
For further information, please contact:
Phone: +1 713 385 4104
This information is the kind of information that Dome Energy AB (publ) is obliged to publicize according to EU Market Abuse Regulations (MAR). The information was publicized, by the above contact person June 2, 2017, 16.30 CET.
About Dome Energy
Dome Energy AB. is an independent Oil & Gas Company publicly traded on the Nasdaq First North exchange in Sweden (Ticker: DOME). Mangold Fondkommission AB, phone: +46 8 503 01 550, is the Company’s Certified Adviser. Headquartered in Houston, Texas, the Company’s focus is on the development and production of existing onshore Oil & Gas reserves in the United States. For more information visit www.domeenergy.com.