EnerVest Ltd., seizing on weakened commodity prices, said May 17 that it has swooped in and gathered $1.3 billion worth of Eagle Ford assets as the company continues to build core positions in key regions.
The company said it has signed or closed deals with three companies to add more than 17 thousand barrels of oil equivalent per day (Mboe/d) to its production volumes. The company has been acquiring in Karnes County, Texas, since September.
“This is a great time in the commodity price cycle to buy oil assets, especially in the core of one of the hottest plays in the U.S.,” said John B. Walker, EnerVest CEO. “With stacked reservoirs of the Lower Eagle Ford, the Upper Eagle Ford and the Austin Chalk, we see plenty of development opportunities at today’s prices."
“With approximately $1.7 billion remaining in our latest fund, we are focused on acquiring the highest margin, best quality assets during the depression of our industry.”
In the most recent deal, EnerVest signed an agreement to acquire assets, 75% of which are operated, from BlackBrush Oil and Gas LP, a portfolio company of funds managed by Ares Management LP.
BlackBrush operates more than 300 wells and about 160,000 net acres in Dimmit, Frio, Karnes, La Salle, Maverick and McMullen counties, Texas. The company also operates 7,111 net acres in Karnes County, according to its website.
The sellers will retain a minority ownership stake in the remaining assets of BlackBrush. The acquisition is expected to close in June, subject to customary closing conditions and purchase price adjustments, EnerVest said. BlackBrush’s 5,170 boe/d of production is about 85% liquids.
EnerVest also said it acquired assets from affiliates of GulfTex, a private company backed with a $150 million commitment from Wells Fargo, Prudential and GSO Capital. In July, GulfTex completed a high-volume Eagleville Field well in Karnes County. IHS reported that the #1 Moezygemba Unit Flowed 3.963 million bbl of oil and 3.131 million cubic feet of gas.
EnerVest said that in late 2015 it acquired a nonoperated position adjacent to the two new acquisitions in Karnes County. In November, EnerVest said it purchased Karnes acreage from an undisclosed seller for $118 million.
Darren Barbee can be reached at dbarbee@hartenergy.com.
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