Japan Petroleum Exploration (Japex) has announced plans to acquire Verdad Resources Intermediate Holdings (VRIH), which owns tight oil and gas assets in the US, from Verdad Resources Feeder for around $1.3bn (Y204bn).
The entire equity interest in VRIH will be acquired by Japex through its subsidiary Peoria Resources Acquisition Company, which is managed by an overseas subsidiary, Peoria Resources.
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This deal will make VRIH a consolidated subsidiary (sub-subsidiary) of Japex.
VRIH owns tight oil and gas assets in Colorado and Wyoming, US.
The operated portion of the assets covers around 125,000 gross acres, while the non-operated portion spans roughly 127,000 gross acres. These assets contain light oil, natural gas liquids (NGLs) and natural gas.
Currently, the assets produce approximately 35,000 barrels of oil per day (bopd) on a net basis, with 70% of output comprising light crude oil and NGLs.
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By GlobalDataThe Japanese company intends to complete the acquisition by February 2026, subject to customary closing conditions.
It aims to use a mix of its own funds and debt to finance the transaction.
Japex said that additional development of the VRIH assets in future could increase production to nearly 50,000bopd by 2030.
The company also intends to focus on the development of the Codell and Niobrara formations within these assets.
Founded in May 2017, VRIH had net assets worth $966.23m as of 31 December 2024. It recorded $825.03m in revenue and $341.26m in operating income during the fiscal year ended 31 December 2024.
According to a Reuters report in February this year, Japex announced a strategic shift in its investment plans to prioritise oil and gas exploration and production investments through 2030.
