Deal description: U.S. Energy Development Corporation (U.S. Energy), an exploration and production company focused on the development of energy projects throughout North America, recently acquired a 25% working interest in the Mascot Project, a stacked pay asset in core Midland Basin for $225 million cash and other considerations. U.S. Energy anticipates full development of the project to comprise another $130 million in capital expenditures over the next two years, bringing the total transaction value to well over $300 million.

Located in Midland County, Texas, the Mascot Project includes multiple producing properties, associated midstream assets, and upwards of 50 undeveloped locations expected to produce ~6,500 BOE per day during 2023. The Mascot Project is majority-owned by Midland Petro D.C. Partners, LLC (MPDC), a David H. Arrington-owned business, and operated by an affiliate of MPDC, Permian Deep Rock Oil Company.

Baker Botts represented U.S. Energy. The client’s press release can be found here.

Baker Botts Lawyers/Offices Involved:

Corporate: Larry Hall (Partner, Dallas), Jonathan Platt (Partner, Dallas)

Tax: Stephen Marcus (Partner, Dallas), Jordan Hahn (Senior Associate, Dallas)

Finance: Shad Sumrow (Partner, Dallas)

Global Projects: Megan Young (Associate, Houston)

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