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