Texas-based independent oil and gas company Hawkwood Energy has signed a definitive agreement for its wholly owned subsidiary Hawkwood Energy East Texas to buy producing and non-producing assets from subsidiaries of Halcon Resources.
The value of the transaction is $500m.
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This deal has an effective date of 1 January and is expected to be completed in March.
The assets to be bought include around 81,000 net acres mainly located in Burleson and Brazos counties, with current gross production of 9,200boe/d (80% oil) from 170 wells producing mainly from the Eagle Ford formation.
The leasehold position is around 80% held by production and 90% operated.
These acquired assets are generally contiguous and close to Hawkwood's existing East Texas properties.
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By GlobalDataGross production from the total assets will be 14,500boe/d (83% oil) from 260 wells in the Eagle Ford, Woodbine, Austin Chalk and Buda formations.
Hawkwood will control more than 180,000 net acres and more than 1,000 commercial drilling locations in the Eagle Ford and Woodbine formations.
Hawkwood CEO and chairman Patrick Oenbring said: "We are excited to acquire these high-quality assets and further expand our East Texas operations.
“This transformational acquisition is a significant step toward the implementation of our strategy to build a leading independent E&P company in the core of the East Texas basin.
"We plan to actively develop these new assets concurrently with our ongoing capital programme for our existing properties. We are excited to combine the basin's strong and improving economics with our low cost operating infrastructure and experienced technical team.
“We will operate these new assets with the same uncompromising approach to safety, the environment, and community relations that we have employed on all of our assets since we commenced operations in East Texas in 2014."
Found in 2012, Hawkwood Energy is a Denver-based independent upstream oil and gas company.
It has equity funding from lead investors Warburg Pincus and Ontario Teachers' Pension Plan.
