SilverBow expands Eagle Ford portfolio in all-stock deal

SilverBow Resources Inc, Houston, has agreed to acquire assets in the Eagle Ford shale in South Texas from an undisclosed seller, expanding the company’s gas portfolio in the Western Eagle Ford and adding oil acreage in three new counties.

The all-stock deal is valued at US$33 million, consisting of about 1.5 million shares of SilverBow common stock.

SilverBow gains 45,000 total net acres in the Eagle Ford, adding to its gas position in McMullen and Live Oak counties, while adding new oil positions in Atascosa, Lavaca, and Fayette counties.

April 2021 net production was about 1,580 boe/d (39% liquids). Net oil production was 569 b/d.

The deal follows a US$24 million cash and stock acquisition of Eagle Ford and Austin Chalk locations, as well as incremental working interest in producing wellbores in the company’s La Mesa position, said Sean Woolverton, chief executive officer.

The deal has an effective date of the 1^st June 2021 and is expected to close on or about the 1^st October 2021, subject to customary closing conditions.

Prior to the announcement, as part of the company’s second-quarter results, the company guided third-quarter 2021 estimated production of 200-215 MMcfed, with natural gas volumes expected to comprise 156-168 MMcfd or 78% of total production at the midpoint.

The majority of the company’s remaining full-year drilling and completions spend is expected to occur in this year’s third quarter.

For full-year 2021, the company guided production of 200-210 MMcfed, an 8% increase at the midpoint compared to prior guidance. That guidance was inclusive of the incremental working interest acquired at La Mesa.

Full year capital budget as of August was guided at US$115-130 million.

The company’s operations as of the 30^th June span about 130,000 net acres in the Eagle Ford.

Source: Oil & Gas Journal