Ensign Natural Resources LLC, Houston, has purchased Eagle Ford shale and Edwards acreage in South Texas from ALFA SAB de CV subsidiary Newpek LLC. The acquisition includes about 5,700 net acres in Bee, DeWitt, Karnes, and Live Oak counties and current net production of about 2,200 boe/d. At the close of this year’s second quarter, the areas had a total of 591 wells connected to sales.
The deal increases Ensign's current ownership in the leases and wells it acquired from Pioneer Natural Resources USA Inc. in 2019 (OGJ Online, May 7, 2019). ALFA, in a separate release Aug. 18, said the deal is in line with its strategy to divest Newpek’s assets outside Mexico. The company has also closed its administrative office in Irving, Tex. and moved remaining functions to Monterrey, Mexico.
With the deal, Newpek has exited Texas, transferring assets to Ensign Operating LLC and Reliance Eagleford Upstream Holding LP in exchange for a complete cancellation of its obligations in the joint venture and operating contracts. As a result of the cancellations, the deal carries an implied value of $88 million for Newpek, ALFA said in a release Aug. 18. Additional details were not disclosed.
Ensign was formed in late 2017 in partnership with private equity firm Warburg Pincus. As part of the Pioneer acquisition, the company also secured an equity commitment from the Kayne Private Energy Income Funds.
