SilverBow Resources Inc., Houston, has agreed to acquire oil and gas assets in DeWitt and Gonzales counties in Texas, adding to the company’s liquids-weighted position in the Karnes trough.
The deal, agreed with an undisclosed seller for $87 million cash, is the seventh acquisition announced by the company since August 2021, the company said in a release Oct. 3.
The transaction is comprised of incremental working interest on SilverBow’s existing acreage as well as new adjacent acreage; provides for extended laterals, additional inventory locations, and more efficient development, the company said.
June 2022 net production from the assets was about 1,100 boe/d (44% oil). The deal adds 5,200 net acres in the oil and condensate windows of Dewitt and Gonzales counties and adds upside in Austin Chalk, which has been de-risked with one well in the center of acreage block having produced over 200,000 bbl of oil to date, the company said.
In combination with SilverBow’s existing position, the deal creates a consolidated 13,000 net acre block with 100 high rate of return drilling locations that allows for 70,000 additional lateral feet to be drilled with 12 fewer wells, the company said.
Closing is expected in this year’s fourth quarter.