BURNETT NEWS

Oil and Gas Investor - "Magnolia Petroleum Purchases Famcor Oil's Assets"

See the following article published here by Oil and Gas Investor:

Magnolia Petroleum Co., a Dallas-based partnership of Burnett Petroleum Co. and private-equity firm CIC Partners, has purchased the assets of Famcor Oil Inc., a Houston based oil and natural gas E&P.

The purchase includes 70 operated wells in San Jacinto, Liberty, Montgomery and Polk counties, Texas. The deal’s price was not disclosed.

As of March, Famcor had gross operated production of 1,057 barrels of oil equivalent per day (boe/d) of which 72% was oil. from multiple formations including the Cockfield, Yegua and Wilcox, according to TGS data. Two-thirds of the wells and more than half of the production are in Polk County.

Arcadia Operating LLC acquired a minority interest and will oversee all operations.

Magnolia Petroleum was formed in 2012 to acquire operated Gulf Coast properties. Burnett Petroleum and affiliates own stakes in 425 plus producing wells in Texas, Arkansas, Louisiana, New Mexico, Mississippi, and Oklahoma with plans in place to have an active Exploration and Development Program in Kansas.

The acquired assets line up well for Magnolia Petroleum’s ambitions and scope of operations in the region, said Kyle Burnett, CEO and president.

The assets represent “a step towards the significant growth that [they] hope to achieve in the following months,” Burnett said.

Burnett said both Magnolia and Burnett Petroleum intend to continue efforts to acquire quality assets located in the U.S. Lower 48 that insure increased value for their companies and partners while expanding their operating footprint within their Areas of Focus.

Rigzone - "Magnolia Petroleum Acquires Assets from FamCor Oil"

See the following article published here by Rigzone:

Dallas-based Magnolia Petroleum Company, a partnership of Burnett Petroleum Company and private equity firm CIC Partners, has acquired all assets of Houston-based E&P (exploration and production) company Famcor Oil, Inc.

Magnolia was formed in 2012 to acquire Gulf Coast properties. With the deal, Magnolia will acquire 70 operated wells in San Jacinto, Liberty, Montgomery and Polk counties. Arcadia Operating, LLC, an independent company headquartered in Dallas, acquired minority interest and will oversee all operations.

Famcor’s assets “align well with [Magnolia Petroleum’s] existent scope of operations and holdings in the region and represent a step towards the significant growth that [they] hope to achieve in the following months,” Kyle Burnett, CEO and president of Magnolia Petroleum Company, stated in a release.

Burnett said Magnolia and Burnett have future plans to acquire more quality assets located in the U.S. Lower 48 and expand their operating footprints within their areas of focus.

Magnolia declined to disclose the monetary amount of the acquisition.

Oil & Gas Journal - "Magnolia Petroleum acquires assets from Famcor Oil"

See the following article published here by Oil & Gas Journal:

Houston, TX (June 29, 2016): Magnolia Petroleum Co., a Dallas-based partnership of Burnett Petroleum Co. (BPC) and private equity firm CIC Partners, has acquired all of the assets of Famcor Oil Inc. Houston.

The acquisition includes 70 operated wells in San Jacinto, Liberty, Montgomery, and Polk counties. BPC affiliate Arcadia Operating LLC acquired a minority interest and will oversee all operations.

As of March, Famcor held gross operated production of 1,057 boe/d, 72% of which was oil, from multiple formations including the Cockfield, Yegua, and Wilcox, according to TGS data. Two thirds of the wells and more than half of the production were in Polk County.

Magnolia was formed in 2012 to acquire operated Gulf Coast properties. BPC and affiliates own stakes in more than 425 producing wells in Texas, Arkansas, Louisiana, New Mexico, Mississippi, and Oklahoma.

CIC Partners - "CIC Partners Announces Follow On Investment In Magnolia Petroleum Company"

The following article was originally published here by CIC Partners:

Dallas, TX (June 9, 2016): CIC Partners ("CIC"), a Dallas-based private equity firm, is pleased to announce a follow on acquisition for its portfolio company, Magnolia Petroleum Company ("Magnolia" or the "Company"). CIC's follow on investment, made in concert with Magnolia CEO and President and CIC Operating Partner Kyle Burnett, will facilitate the acquisition of over 50 operated properties from Famcor Oil in San Jacinto and Polk County. Based in Dallas, Texas, Magnolia is an oil and gas acquisition and production company targeting developments in South and East Texas.

"This acquisition aligns well with our existent scope of operations and holdings in the region," said Kyle Burnett. "[It] represents a step towards the significant growth that we hope to achieve in the following months."

The acquisition includes a material amount of proprietary 3D seismic, acreage held by production, and other real property associated with the fields. The acquired properties sit between Magnolia's current operations in South Texas and Louisiana but produce out of many of the same conventional channel sands.

"This was also a nice opportunity for Magnolia to diversify its revenue stream with some oil weighted properties," commented Bayard Friedman, Vice President at CIC Partners. "We are confident that Kyle Burnett and the rest of his operating team will be able to workover key properties and augment reserves in these and adjacent fields."

Marshall Payne, Partner at CIC Partners, added, "We are excited to continue investing with Kyle. We believe this is the right time in the cycle to be investing alongside likeminded operators seeking to grow reserves in low finding cost basins. This was a great fit for Magnolia, and we hope to find others in the years ahead."

ABOUT CIC PARTNERS

CIC Partners is a middle-market private equity firm that invests in growth-oriented companies primarily in the food, restaurant, and energy industries. CIC manages the personal capital of its investment team, operating partners and strategic investors and seeks to partner with owner-operators, founders and management teams. CIC looks for opportunities where it can leverage the collective experience of its investment team and its operating partners, who are successful CEOs and entrepreneurs, to guide, support and add value to portfolio companies. Based in Dallas, Texas, the firm has been generating wealth in private-equity investing for its investors and management teams for over 25 years. 

ABOUT MAGNOLIA PETROLEUM

In concert with CIC Operating Partner Kyle Burnett, Magnolia Petroleum was capitalized in 2013 to pursue the acquisition and development of oil and gas properties in the United States. With working interest ownership in over 100 wells across South and East Texas as well as Louisiana, Magnolia Petroleum couples a talented management team with a proven track record of exploiting reserves with CIC's strategic and investment capabilities.  

PLS Journal - "Burnett affiliate buys Famcor's assets in southeast Texas"

Magnolia Petroleum, a Dallas-based partnership of Burnett Petroleum and PE firm CIC Partners, acquired the assets of Houston-based Famcor Oil. The purchase includes 70 operated wells in San Jacinto, Liberty, Montgomery and Polk counties. Burnett affiliate Arcadia Operating acquired a minority stake and will oversee operations.As of March, Famcor had gross operated production of 1,057 boe/d (72% oil) from multiple formations including the Cockfield, Yegua and Wilcox, according to TGS data. Two-thirds of the...

To see the remainder of this article please visit PLS A&D Transaction Journal. Originally published June 14, 2016, Volume 27, No. 9.   

Magnolia Petroleum Acquires FamCor Assets

Dallas, Texas (June 6, 2016)— Magnolia Petroleum Company, a Dallas based partnership co-owned by Burnett Petroleum Company and CIC Partners, announces the acquisition of the assets of Famcor Oil, Inc., a Houston based oil and natural gas exploration and production company. The acquired assets are located in San Jacinto, Liberty, Montgomery and Polk Counties, Texas and include interests in 70 operated wells. Arcadia Operating, LLC, also based in Dallas, Texas, acquired a minority interest in the properties and will oversee all operational activities. The value and terms of Magnolia Petroleum Company’s acquisition of Famcor Oil, Inc. were not disclosed.

Kyle Burnett, CEO and President of Magnolia Petroleum Company, commented that the acquired assets “align well with [Magnolia Petroleum’s] existent scope of operations and holdings in the region and represent a step towards the significant growth that [they] hope to achieve in the following months.” According to Mr. Burnett, both Magnolia and Burnett Petroleum Company intend to continue efforts to acquire quality assets located in the U.S. Lower 48 that insure increased value for their Companies and Partners while expanding their operating footprint within their Areas of Focus.