HOUSTON—SilverBow Resources Inc. announced Aug. 13 it has entered into definitive agreements to acquire oil and gas assets in the Eagle Ford from an undisclosed seller.
- All stock Transaction for approximately $33 million, consisting of approximately 1.5 million shares of SilverBow common stock;
- 45,000 total net acres in the Eagle Ford, bolstering SilverBow’s gas position in McMullen and Live Oak counties, while adding new oil positions in Atascosa, Lavaca, and Fayette counties; and
- April 2021 net production of approximately 1,580 barrels of oil equivalent per day, 39% liquids. Net oil production of 569 bbl/d.
Sean Woolverton, SilverBow’s CEO, said, “We continue to execute on accretive opportunities and bolster our balanced oil and gas portfolio.
“This marks the second acquisition we have announced since the beginning of August. Our first deal increased our high-return Eagle Ford and Austin Chalk locations, as well as incremental working interest in producing wellbores, in our La Mesa position.
“Today’s announcement expands our gas portfolio in the Western Eagle Ford, while also adding oil acreage in three new counties. Each transaction is accretive to adjusted EBITDA and further reduces our pro forma leverage ratio via the assets’ incremental cash flow. Our ability to use stock as consideration reflects the constructiveness of Eagle Ford partners to share in SilverBow’s long-term value creation.”
The Transaction has an effective date of June 1 and is expected to close on or about Oct. 1, 2021, subject to customary closing conditions. The total purchase price for these Eagle Ford assets is approximately $33 million, consisting of approximately 1.5 million shares of SilverBow common stock based on its 30-day volume weighted average price as of July 7, 2021.
SilverBow is a Houston-based energy company actively engaged in the exploration, development and production of oil and gas in the Eagle Ford Shale in South Texas. With over 30 years of history operating in South Texas, the company possesses a significant understanding of regional reservoirs which it leverages to assemble high quality drilling inventory while continuously enhancing its operations to maximize returns on capital invested.
Talos Energy Inc. has entered into two separate agreements on Sept. 19 with BP Plc and Exxon Mobil Corp. related to new exploration opportunities in the U.S. Gulf of Mexico (GoM).
Drill to a total depth of 21,600 ft by the Noble Don Taylor rig, the well logged about 200 ft gross and 130 ft net of true vertical pay, the company said in an update given as part of its 2019 operating and financial guidance.
The Gulf of Mexico is believed to have more than 30 gigatons of available CO2 storage, according to Talos.