Lonestar Resources US has completed the transaction to purchase producing properties in the Eagle Ford Shale play from Sabine Oil & Gas and Alerion Gas AXA.
The company acquired 2,706 net acres in the Sugarkane Field in DeWitt County, Texas for a consideration of $38.7m.
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The acquired assets currently produce 800boe/d from 20 wells.
Lonestar noted that it has identified 26 drilling locations in Lower Eagle Ford, with additional drilling potential in the Upper-Lower Eagle Ford, the Upper Eagle Ford and the Austin Chalk.
Based on internal estimates, the properties contain total proved reserves of 13MMboe.
Lonestar Resources US CEO Frank Bracken said: “This acquisition is a continuation of Lonestar’s core strategy of accretively expanding its Eagle Ford Shale position while maintaining a returns-focused investment approach.
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By GlobalData“We have added meaningfully to our position in DeWitt County, in an area that features some of the thickest Lower Eagle Ford Shale in the Sugarkane Field.
“We believe the application of our geo-engineered drilling and completion process can yield highly productive wells that yield attractive rates of return on invested capital. As is typically the case with our acquisitions, we see potential to increase lateral lengths and further enhance returns.”
As a result of the transaction, the company has raised its 2019 production outlook from a range of 13,000-14,000boe/d to 13,700-14,700boe/d.
Last May, Lonestar signed agreements with different companies to buy oil and gas assets in the Eagle Ford Shale play for a total price of $116.6m.
As of 31 December 2017, the company’s Eagle Ford properties had proved reserves of 73.6MMboe.
