Venado Oil and Gas Buys Eagle Ford Assets for $300 Million
Venado Oil and Gas, LLC reaches deeper into the Eagle Ford with an agreement to purchase more acres in Zavala, Frio and Dimmit counties.
Related: EXCO Suspends Eagle Ford Operations
Venado will purchase the Eagle Ford assets from EXCO Resources, Inc and plans the transaction to close in June 2017. During December 2016, the properties produced approximately 4,100 BOE per day (~90% oil).
Exco announced they will use the proceeds from the $300 million deal to fund drilling and development in the company's Haynesville and Bossier shale assets. Four years ago, Exco purchased this acreage from Chesapeake for more than $680 million but suspended exploration in the Eagle Ford during the pricing crash of 2015.
This purchase is the second in recent months that marks a move by Venado to build their Eagle Ford business. In March, Venado EF L.P., a subsidiary of Venado Oil & Gas, LLC, acquired approximately 37,500 net acres in the Maverick Basin/Eagle Ford area from SM, which included a 12.5% interest in the Springfield Gathering System.
“This acquisition is a great first step for our partnership with KKR and our collective strategy to build a valuable Eagle Ford business. The SM Asset is a large producing asset with attractive future drilling opportunities which aligns well with our strategy. We will now turn our focus to building a strong operated position elsewhere in the Eagle Ford.”