SM Energy Sells Eagle Ford Assets

Venado Oil and Gas Gains 37,500 Acres
SM Energy Sells Eagle Ford Assets

SM Energy Sells Eagle Ford Assets

SM Energy Company has plans to sell some of its Eagle Ford assets in order to expand other operations.

Related: Wildhorse Development Corp. Goes Public

The $800 million deal gives a subsidiary of Venado Oil and Gas, LLC ownership interest in Eagle Ford midstreams assets. Details include:

  • Approximately 37,500 net acres in the Eagle Ford
  • 12.5% interest in the Springfield Gathering System
  • In the third quarter of 2016, these assets produced approximately 27,260 net Boe per day
  • The transaction is expected to close in the first quarter of 2017
“We are pleased to announce the signing of this agreement as we kick off 2017. This sale supports SM’s strategy to be a premier operator of top tier assets.  Our 2017 capital program will focus on our top tier oil position in the Midland Basin , consisting of approximately 87,600 net acres, and our top tier operated natural gas and NGL position in the Eagle Ford, consisting of approximately 161,500 net acres.  The proceeds from this sale will provide us with additional flexibility to pursue aggressive growth from our Midland Basin assets, with related capital expenditures in excess of cash flow over the next few years, while at the same time improving our debt metrics and maintaining strong liquidity.” – President & Chief Executive Officer Jay Ottoson

In December, Houston-based Wildhorse Resource Development Corp. launched its initial public offering with plans to focus on development in the Eagle Ford Shale. The company will move forward with its acquisition of 158,000 net acres in the Eagle Ford Shale known as “Burleson North” from Clayton Williams Energy for $400 million. SEC documents verify that the company made a down payment of $45 million in October for the property, which produced 3.9 million barrels of oil equivalent per day during the third quarter of 2016.

Read more at sm-energy.com

 

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Elizabeth Alford

Elizabeth Alford

Elizabeth Alford writes on significant news developments in the Eagle Ford oil and gas play taking place across South TX. She is a freelance writer with an extensive communications, PR, and staff writing background.
Elizabeth Alford

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