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Oil and gas exploration and production company Marathon Oil has closed the deal to acquire Eagle Ford Shale assets of Ensign Natural Resources for a total cash consideration of $3bn.

In November, Marathon Oil agreed to acquire the assets.

The deal completed following receipt of customary approvals.

Ensign owns and operates around 130,000 acres in Eagle Ford Shale in South Texas, with production estimated to be 67,000 barrels of oil equivalent per day (boepd) in Q4 2022.

The assets bought from Ensign Natural Resources are located in Live Oak, Bee, Karnes, and Dewitt Counties across the condensate, wet gas, and dry gas phase windows of Eagle Ford.

From the acquired Eagle Ford assets, Marathon Oil expects to deliver maintenance level production, with nearly one rig and 35 to 40 wells.

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The new acreage is expected to boost the company’s basin scale to 290,000 net acres.

Marathon Oil CEO, chairman and president Lee Tillman said: “This acquisition satisfies every element of our disciplined acquisition criteria.

“It’s immediately accretive to our key financial metrics, it will drive higher shareholder distributions consistent with our operating cash flow driven Return of Capital framework, it is accretive to inventory life with attractive locations that immediately compete for capital, and it offers truly compelling industrial logic given our existing Eagle Ford footprint and track record of execution excellence in play.”