Armada Oil Inc. has closed a $6.5 million deal for access to oil producing land in Kansas.
The company bought the working interest in six producing oil and gas leases that cover more than 1,000 acres in the Vernon Field in Woodson County, Kansas. Assets currently include 125 shallow wells, but Armada expects to potentially drill 150 more wells throughout the area. The Dallas-based oil and gas exploration company also owns properties in Louisiana, Oklahoma, Wyoming and New York.
The deal comes during a busy time in the energy sector, as many companies look to acquire oil and gas assets. In April, General Finance Corp. (Nasdaq: GFN) closed a $95 million deal for Lone Star Tank Rental and KH Rentals LLC, which lease portable liquid storage tank containers to the oil and gas industry. In March, Southcross Energy Partners LP (NYSE: SXE) bought natural gas pipelines in Texas for $40 million.