Ineos Energy has wrapped up the acquisition of onshore oil and gas assets worth $1.4bn in south Texas from shale gas producer Chesapeake Energy.
The deal covers 172,000 net acres and approximately 2,300 wells in the black oil portion of the gas producer’s Eagle Ford assets, primarily in Dimmit, LaSalle and McMullen counties.
At the end of 2022, the 2,300 wells covered under the deal produced approximately 36,000 barrels of oil equivalent (boe) per day.
Furthermore, the acquisition also covered related property, plants and equipment.
The deal marks Ineos Energy’s foray as operator into the US onshore oil and gas market.
“The addition of Chesapeake’s assets and operations in south Texas is part of Ineos Energy’s strategy to build a global integrated portfolio, fit for the energy transition, offering high-quality, energy solutions to its customers,” Ineos Energy said in its press statement.
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As per the agreement, approximately 100 employees will now transition to Ineos Energy.
The acquired properties had net proven reserves of approximately 144 million barrels of oil equivalent as of 2022.
At the time of announcing the deal in February this year, Chesapeake president and CEO Nick Dell’Osso said: “Today marks another important step on our path to exiting the Eagle Ford as we focus our capital on the premium rock, returns and runway of our Marcellus and Haynesville positions.
“We are pleased to have secured an aggregate of $2.825bn to date and remain actively engaged with other parties regarding the rest of our Eagle Ford position.”
Chesapeake plans to use the proceeds from the deal to slash its debt and buyback shares.
In January 2023, Chesapeake also agreed to sell part of its south Texas operations to privately owned Wildfire Energy for $1.43bn.