WildHorse Resource Development Corp. (NYSE: WRD) signed purchase and sale agreements to acquire Eagle Ford Shale assets in Burleson County, Texas, for about $15.6 million, the Houston-based company said Feb. 23.
The acquired assets consist of 10,535 net acres, seven operated (nine nonoperated) producing wells and undeveloped leasehold. Combined production is about 1,200 gross (195 net) barrels of oil equivalent per day.
The implied acquisition cost for the acreage is roughly $812 per acre, said Jay Graham, chairman and CEO of WildHorse.
RELATED: WildHorse’s Eagle Ford Land Grab Rides On IPO
"This transaction is consistent with our strategy of not only expanding our industry-leading position in East Texas, but also, expanding our acreage at an attractive value. Entry points like this help us achieve what we think are some of the best full cycle economics in any oil play in the country," Graham said in a statement.
In December, WildHorse wrapped up its IPO, along with three deals adding more than 170,000 net acres of Eagle Ford acreage for $400 million.
WildHorse said the newly acquired properties are immediately contiguous and complementary to its existing East Texas Eagle Ford properties. The acquisition is expected to increase WildHorse's working interest in more than 188 gross locations in the Burleson Main and Burleson North areas.
The multiple sellers were undisclosed. One transaction has closed and the other transactions are expected to close in April.
Recommended Reading
NAPE: Turning Orphan Wells From a Hot Mess Into a Hot Opportunity
2024-02-09 - Certain orphaned wells across the U.S. could be plugged to earn carbon credits.
Chevron Hunts Upside for Oil Recovery, D&C Savings with Permian Pilots
2024-02-06 - New techniques and technologies being piloted by Chevron in the Permian Basin are improving drilling and completed cycle times. Executives at the California-based major hope to eventually improve overall resource recovery from its shale portfolio.
Comstock Continues Wildcatting, Drops Two Legacy Haynesville Rigs
2024-02-15 - The operator is dropping two of five rigs in its legacy East Texas and northwestern Louisiana play and continuing two north of Houston.
CEO: Continental Adds Midland Basin Acreage, Explores Woodford, Barnett
2024-04-11 - Continental Resources is adding leases in Midland and Ector counties, Texas, as the private E&P hunts for drilling locations to explore. Continental is also testing deeper Barnett and Woodford intervals across its Permian footprint, CEO Doug Lawler said in an exclusive interview.
US Drillers Add Oil, Gas Rigs for Second Week in a Row
2024-01-26 - The oil and gas rig count, an early indicator of future output, rose by one to 621 in the week to Jan. 26.