WildHorse to Acquire Eagle Ford Acreage from Anadarko and KKR for $625 Million
Published: May 19, 2017 |
WildHorse Resource Development has agreed to purchase around 111,000 net acres and associated production in the Eagle Ford Shale play from Anadarko Petroleum and Kohlberg Kravis Roberts & Cofor about $625m.
The deal included the payment of $556m of cash to APC and 6.3 million shares of WRD common stock valued at about $69m to KKR.
The acquired assets include 949 net Eagle Ford locations and 22.9 MMBoe of proved developed producing reserves with 73 percent oil and 88 percent liquids.
Under the deal, WildHorse will acquire around 111,000 net acres in Burleson, Brazos, Lee, Milam, Robertson, and Washington Counties, which are adjacent to the firm’s existing acreage position.
In the fourth quarter of 2016, the acquired assets’ net production was 7,583 barrels of oil equivalent per day, which included 72 percent oil from 386 operated wells.
WRD’s Altimore and Jackson assets are situated on a two-well pad, which are next to the eastern portion of the acquisition acreage. In addition, the firm’s Paul asset is adjacent to the western portion of the acquisition acreage.
Subject to customary closing conditions, the deal is expected to complete by the end of this June.
WRD Chairman and CEO Jay Graham said: “With a total of 385,000 net acres, we have built a premier contiguous acreage base making us the second largest operator in the entire Eagle Ford trend.
“Furthermore, we have done so at prices we believe to be extremely attractive, providing highly economic returns on a full cycle basis.”
“In addition, we recently brought online some of the strongest East Texas Eagle Ford wells to date which makes us even more confident in our strategy. We look forward to incorporating the acquired assets into our 2017 program.”
Source: (May 12, 2017) Energy Business Review
To stop by WildHorses’ website, CLICK HERE
To stop by Anadarko’s website, CLICK HERE
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