HOUSTON--(BUSINESS WIRE)--AEG Affiliated Energy Group announced today that it and its affiliates have acquired a ten percent working interest in a conventional oil project in Louisiana. The project focuses almost entirely on oil rather than natural gas with objectives near 14,000 feet. All requisite drilling permits were obtained before the federal government shutdown with an initial spud date expected mid-October.
“The acquisition of this conventional oil objective is expected to be cash generative and enhance our earnings,” said Rob S. Potosky, who co-chairs AEG’s M&A Practice. “We presently envision and are evaluating investments and acquisitions of additional conventional oil exploration projects. Our team believes that the market presently undervalues many North American conventional plays due to what we believe may be an overemphasis (and overpricing) of various shale gas objectives on the continent.”
In more downstream activities, AEG’s team has already consummated at least five mergers and acquisition deals and/or debt financing deals specifically involving retail gas and electricity providers over roughly the past two years, with the parties to such transactions headquartered across three continents. AEG’s team also forecasts two additional M&A deals specifically involving gas and power providers closing by end of Q1 2014.
“This recent acquisition furthers our strategic objective to accelerate AEG’s expansion and operations further upstream in the North American energy markets,” said Chad Price, EVP of AEG’s Commercial Energy Division. “Our working interest was acquired through a 100 percent cash investment with the AEG Group investing in this acquisition in conjunction with Potosky Drilling Fund. AEG is seeking to acquire working interests in two additional oil exploration projects over the next 12 months.”
Notices and About AEG Affiliated Energy Group
THIS ANNOUNCEMENT APPEARS AS A MATTER OF RECORD ONLY AND IS NOT TO BE CONSIDERED ANY ADVICE OR ANY TYPE OF OFFER OR SOLICITATION WITH RESPECT TO ANY SECURITIES, COMMODITIES, REAL PROPERTY, OR ANY OTHER PROPERTY. AEG is an energy and financial services firm headquartered in Houston, Texas. For more information, visit www.affiliatedenergy.com. All services that are required to be performed by a registered broker-dealer are offered through Burch & Company, Inc., Member FINRA & SiPC. The AEG Group and Burch are not affiliated entities.