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Blueknight to sell asphalt terminals

Blueknight Energy Partners has announced it will sell asphalt terminals in Lubbock and Saginaw, Texas, and in Memphis, Tennessee, to Ergon Asphalt & Emulsions for $90 million. Officials said net proceeds from the sale will be used to reduce the company’s outstanding debt under its revolving credit facility.

Ergon Asphalt & Emulsions is an affiliate of Ergon Inc., which indirectly owns 100 percent of the general partner and 27.5 percent of limited partner interests in Blueknight Energy Partners. Accordingly, the conflicts committee of Blueknight’s general partnership reviewed and evaluated the proposal using independent legal and financial advisers before unanimously approving the deal, officials said.

Blueknight Energy Partners also said it amended its credit facility to allow it to make up to a $55 million investment in its previously announced Cimarron Express joint venture, reduce its commitments under its credit facility from $450 million to $400 million, limit distributions by the partnership to $10.7 million per quarter until Dec. 31, 2019, and provide financial covenant relief.

“The sale, along with an anticipated 30 percent reduction in the cash distributions to our common unit holders, decreases leverage and provides additional financial flexibility” for Blueknight, Chief Executive Officer Mark Hurley stated in a release.

Petro River to drill in Osage County

Petro River Oil Corp. has announced it plans to drill an exploratory well in Osage County.

Officials said the well will be drilled in the firm’s Arsaga field holdings and will be the first of three exploratory wells it plans to drill based on information it has obtained using 3-D seismic imaging.

If those wells are successful, officials said Petro River could drill up to 100 wells in that field, with estimated ultimate recoveries per well of about 50,000 barrels of oil equivalent.

“Upon success in the Arsaga field, we expect to create a scalable and repeatable drilling program that continues to find low-risk and high-return prospects,” stated Stephen Brunner, Petro River’s president, in a release announcing the project.

Farm Bureau endorses Bob Anthony

The Oklahoma Farm Bureau’s political action committee is endorsing Oklahoma Corporation Commissioner Bob Anthony as he prepares for a runoff election against former Oklahoma Sen. Brian Bingman, Anthony’s campaign has announced.

Noting Anthony’s experience serving customers through C.R. Anthony’s, Oklahoma Farm Bureau President Rodd Moesel stated in a release that farmers and ranchers know the commissioner is committed to serving rural communities.

“He has stood up for small businesses and against powerful special interests, and we have confidence he will continue to listen to our concerns and treat us fairly,” Moesel stated in the release.

Both Anthony and Bingman seek the Republican nomination for a November general election that will chose a commissioner to serve a six-year term as part of the elected body. If Anthony wins, it will be his final term because of term limits.