Today, Vitol’s upstream Company in the US, Vencer Energy, announced it signed an agreement to acquire assets in the Midland Basin, property of Hunt Oil Company. In fact, these assets include 44,000 acres across five counties and have current daily production of approximately 40 million barrels of oil equivalent per day.
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Vencer Energy on acquiring Midland Basin’s assets
Today, Vencer Energy announced it signed an agreement to acquire the assets property of Hunt Oil Company. Indeed, these assets are located in the Midland Basin and account for 44,000 acres across five counties.
Moreover, they have current daily production of approximately 40 million boepd.
Accordingly, this deal marks Vencer’s first acquisition since its launch in 2020 by Vitol. Thus, Vencer aims to acquire mature, producing oil and gas assets.
Furthermore, the Company has a specific focus on critical basins in the US Lower 48.
Reception
In this regard, Vitol Americas head Ben Marshall said: “This is an essential day for Vencer as it establishes itself as a significant shale producer in the US Lower 48.
In fact, “we expect US oil to be an important part of global energy balances for years to come,” Mr. Marshall added. Thus, “we believe this is an opportune time for investment into an entry platform in the Americas.”
According to Bloomberg, the transaction could cost more than $1bn. Finally, Simmons Energy served as financial advisor for Vencer, while Latham & Watkins acted as legal advisor.
“Vitol has a long history of investing in quality upstream assets. Besides, we are pleased to add this business to our global portfolio,” Mr. Marshall noted. Hence, “this acquisition represents an initial step to building a larger, durable platform in the US Lower 48.”
Finally, Vencer president and CEO Don Dotson concluded that the acquisition realizes the Company’s vision. In brief, they approached this opportunity as the owner of quality, mature, producing assets with attractive development opportunities.
