Magnolia Oil & Gas Corp., Houston, has agreed to acquire certain oil and gas producing properties including leasehold and mineral interests in the Giddings area in South Texas from an undisclosed seller for $300 million.
An additional contingent cash payment of up to $40 million may be paid through December 2025 based on future commodity prices, the company said in a release Sept. 5.
The deal adds about 48,000 net acres in Giddings (96% operated, 91% working interest). Combined with a smaller acquisition that closed in July 2023, Magnolia’s position in Giddings now totals over 500,000 net acres with a development area of more than 150,000 net acres (OGJ Online, Aug. 2, 2023).
Development locations in both the Eagle Ford and Austin Chalk formations are expected to be included in Magnolia’s ongoing Giddings development program beginning in 2024, the company said.
At closing, expected in this year’s fourth quarter, Magnolia expects production from the assets of about 5,000 boe/d (more than 70% oil).
