Earthstone Acquires Additional Eagle Ford Acreage in South Texas
NYSE-listed Earthstone Energy Inc. has entered into an agreement with four separate sellers to acquire working interests in approximately 2,400 net acres of Eagle Ford shale play assets in South Texas, for an aggregate purchase price of approximately US$48 million.
The transaction includes certain working interests in the assets owned by two affiliates of Texas-based Titanium Exploration Partners LLC, which makes it the largest component of the acquisition, constituting the majority of the total consideration.
The acquired acreage is located in the southern Gonzales County, and represents low-cost, high margin and lower declining production. The transaction will increase Earthstone’s working interest in the assets from approximately 34% to 96%. As of April 1st, 2021, net proved (1P) reserves attributable to the acreage were approximately 3.4 million barrels of oil equivalent (MMboe), with net average daily production of approximately 1,150 barrels of oil equivalent per day (boe/d) recorded during May, of which approximately 89% is oil.
“The Eagle Ford Acquisitions, following the announcement of the proposed Tracker acquisition in April 2021 and the closing of the IRM acquisition in January 2021, are yet another step in our ongoing consolidation strategy. We paid an attractive price for these producing assets which we already operate and they will add 1,150 boepd of production with a lower decline profile compared to our current aggregate corporate decline profile. While not as significant in size as the previously announced acquisitions, the Eagle Ford Acquisitions will increase oil production and positively impact our overall cash margins,” commented Robert J. Anderson, President & CEO of Earthstone.
Headquartered in The Woodlands, Texas, Earthstone currently holds a portfolio of unconventional and conventional assets in the Midland basin and Eagle Ford trend in Texas.