Evolution Petroleum has agreed to acquire non-operated natural gas assets in Jonah field in Sublette County, Wyo. from Exaro Energy III LLC for $29.4 million.
The deal includes 42 bcf of natural gas equivalent (bcfe) of long-life proved developed producing reserves in the Jonah Energy LLC-operated natural gas field in the northwestern portion of the Green River basin. The assets are producing from the Lance Pool consisting of 3,000-5,000 ft of gross thickness (~45% net pay) of over-pressured reservoir, Evolution said in a Feb. 9 investor report.
Evolution's net daily production would increase by about 37% or 14.2 MMcfed (88% natural gas, 6% oil, 6% natural gas liquids). The assets include an average working interest of 19.3% and an average revenue interest of 14.7% in 648 producing wells and about 1,040 net acres in the field.
Natural gas production has access to multiple markets including to the west through the Opal market hub, with optionality to flow to eastern markets.
The deal, subject to conditions, is expected to close on or about Apr. 1, 2022.
