Benchmark Energy II has closed a senior secured financing of up to $47.5 million from Cibolo Energy Partners to accelerate development of its Western Anadarko Basin assets.
The proceeds are dedicated to an operated, multi-well development program across Benchmark’s liquids-rich and oil-weighted position in the basin.
Benchmark is majority owned by Acacia Research Corporation and operates as a joint venture with McArron Partners and members of management.
The financing gives Benchmark additional capital to increase development activity across its operated acreage as drilling activity in the Western Anadarko Basin increases.
Benchmark said recent well performance in the region has improved compared with results from approximately a decade ago.
The company attributes that improvement to increased concentration on higher-quality acreage, more conservative well spacing and modern completion techniques.
The transaction represents Benchmark’s second financing with Cibolo Energy Partners.
TenOaks Energy Advisors served as exclusive financial adviser to Benchmark in connection with the financing.
KEY QUOTES:
“This financing enables us to accelerate development across our operated acreage footprint. Rig activity in the Western Anadarko is up sharply, led almost entirely by private operators. Well-level results today are much improved from a decade ago, driven by focus on the best rock, conservative spacing, and modern completions. This is our second transaction with the Cibolo team. They understand the basin and have been a strong partner across both, which made this a straightforward process.”
Kirk Goehring, Chief Executive Officer of Benchmark Energy II
