WildFire Energy I LLC has acquired approximately 16,000 net acres of leasehold and 58 operated wells in the East Texas Eagle Ford from an undisclosed seller.
With the acquisition, WildFire will operate more than 2,000 wells on 873,000 net acres in the eastern Eagle Ford encompassing Fayette, Bastrop, Lee, Austin, Washington, Burleson, Brazos, Milam, Robertson, Madison, and Grimes counties in Texas, the company said in a news release. The financial details were not disclosed.
“The acquired asset is an ideal fit to our existing acreage, and we look forward to operating the asset with the benefits of our scale in the Eagle Ford,” Wildfire President and COO Steve Habachy said. “Acquisitions such as this one represent an important part of our company’s strategy and we continue to seek out and evaluate similar transactions”.
Acquisition from Apache
In May, WildFire entered into an agreement to acquire approximately 237,000 net acres and interests in 465 wells in the East Texas Eagle Ford from Apache Corporation and its subsidiaries.
WildFire’s total position includes approximately 550,000 net acres prospective for the Austin Chalk as well as acreage in the Woodbine, Buda, and Georgetown formations, it said in a separate news release.
In the first quarter, the acquired Apache assets averaged net daily production of approximately 11,000 barrels of oil equivalent (boe), consisting of 67 percent liquids. WildFire estimated that unaudited net proved reserves were approximately 40 million barrels of oil equivalent (MMboe) as of December 31, 2023. Pro forma for the acquisition, WildFire’s net daily production will surpass 50,000 boe, consisting of 85 percent liquids, it said.
The Apache acquisition follows WildFire’s acquisition of Chesapeake Energy Corporation’s Brazos Valley region assets in the eastern Eagle Ford in March and allows WildFire to capitalize on its existing infrastructure and scale in the region. WildFire previously acquired MD America Energy, LLC in March 2022 and Hawkwood Energy, LLC in August 2021, which began the process of consolidating the eastern Eagle Ford basin.
“This acquisition of adjacent assets presented us with a strategic opportunity to continue consolidating the basin,” Habachy said. “With a total of more than 850,000 net acres, we have built a premier contiguous asset base, making WildFire the largest operator in the entire Eagle Ford trend”.
WildFire Energy describes itself as an independent energy platform company pursuing production-weighted oil and gas assets in onshore U.S. basins, seeking to efficiently optimize and develop reserves using modern technologies and its extensive operating experience. The company was formed in 2019 with funding from Warburg Pincus, Kayne Anderson, and its management.
Source: www.rigzone.com
