Japanese firm JAPEX made an equity investment in new E&P Peoria Resources, the companies said March 26. (Source: Shutterstock.com)
JAPEX U.S. Corp. (JUS), the U.S. arm of Japan Petroleum Exploration Co. Ltd., has made an equity investment to E&P Peoria Resources, the companies said March 26.
Financial terms of the equity investment were not disclosed, but the transaction comes as part of JAPEX’s plans to invest $1.5 billion in exploration and development projects through the end of 2030.
The Peoria Resources management team is led by co-founders Greg West, CEO, and David Kita, CTO.
Before launching Peoria, West and Kita served on the management team of TreadStone Energy Partners. TreadStone Energy Partners III launched with a $180 million equity commitment from Kayne Anderson in 2022.
“We are excited to partner with JAPEX to build a healthy, scalable operated oil and gas business, employing top notch staff who deliver quality choices for cash flow and additional equity investment across both short- and long-term horizons,” West said.
The Peoria investment is an extension of JAPEX’s existing non-operated U.S. oil and gas business.
JAPEX owns minority interests in the South Texas Eagle Ford Shale and in the Woodford play in southern Oklahoma. Operators include Marathon Oil and EOG Resources, according to the JAPEX website.
“We believe that our experience identifying and optimizing assets, paired with JAPEX’s expertise, will position Peoria to build a successful operated oil and gas business,” Kita said.
Willkie Farr & Gallagher LLP served as legal adviser to Peoria. K&L Gates LLP served as legal adviser to JUS in connection to Peoria’s formation.
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International interest
M&A experts say there’s significant interest for U.S. shale among international buyers once again, particularly for natural gas assets.
Japanese companies are clearly leading the way in U.S. shale gas among Asian and European buyers.
Japanese firm Mitsui spudded a test well earlier this month near the emerging western Haynesville play, adjacent to acreage held by Comstock Resources.
TG Natural Resources, the fourth-largest Haynesville Shale gas producer, is majority owned by Tokyo Gas, the largest utility company in Japan.
Sabine Oil & Gas, another major Haynesville producer, is backed by Japanese utility Osaka Gas.
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