Chemicals

Crescent will buy U.S. oil assets from Verdun Oil for $ 815 million

Crescent Energy has agreed to acquire from the Verdun Oil Company assets for oil and gas production in the Winta Basin, Utah, USA, as part of a deal worth $ 815 million.

The deal includes more than 400 vertical and horizontal production wells and more than 145,000 adjacent net acres, mostly located in Duchenne and Wint, formerly owned by EP Energy.

The acquisition is part of Crescent’s strategy to acquire valuable and incremental cash assets while maintaining financial strength.

The operation is scheduled to be completed in the first half of 2022, and it is subject to normal closure conditions, including some permission from regulators.

Crescent CEO David Rockharley said: “We are acquiring these assets on a convincing basis. They are a great addition to our existing footprint in the Rockies and fit perfectly into our cash flow strategy.

“The important thing is that this deal supports our commitment to financial strength and flexibility, while adding significant scale to our production base with low reductions, free cash flow and proven inventory of highly economical reinvestment opportunities.”

Following the completion of the transaction, Crescent intends to operate two rigs in the Winta Basin this year.

Crescent will also revise its capital budget for 2022, which is expected to be $ 600 million to $ 700 million.

In 2021, private investment company EnCap Investments, which owns Verdun Oil Company, has agreed to acquire EP Energy’s assets in the Eagle Ford and Uinta pools for $ 1.5 billion.

US antitrust regulators have threatened to block the deal between EnCap and EP Energy, citing concerns that EnCap will become “too dominant” in the Wint Basin, according to Reuters.

To prevent a possible legal challenge from the regulator, EP Energy restored selling its oil assets in Utah, the news agency reported, citing people familiar with the matter.

Earlier this month, Crescent announced it was considering selling some of its assets Alberta and Saskatchewan, Canada.

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https://www.offshore-technology.com/news/crescent-oil-assets-verdun/ Crescent will buy U.S. oil assets from Verdun Oil for $ 815 million

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