SilverBow Resources Inc., Houston, has agreed to acquire oil and gas assets in the Eagle Ford shale in South Texas from two unnamed sellers.
Total purchase price for the assets is $75 million, consisting of $45 million in cash and about $30 million in equity. SilverBow will acquire 17,000 total net acres in the oil-window of La Salle, McMullen, DeWitt, and Lavaca counties. May 2021 net production was 2,500 boe/d (71% liquids, 46% oil) from 111 PDP wells. The acquired oil production represents a 30% increase to SilverBow’s current full-year 2021 oil production guidance, the company said in a release Oct. 11.
With the deal, Silverbow adds over 100 net drilling locations—about 3 years of inventory at the company’s current 1 rig drilling pace.
The acquisition is expected to close before yearend, subject to customary closing conditions.