Hawkwood Energy LLC subsidiary Hawkwood Energy East Texas LLC is set to acquire acreage in east Texas from subsidiaries of Halcon Resources for $500 million.
The producing and nonproducing assets include almost 81,000 net acres mainly in Burleson and Brazos counties, currently producing 9,200 barrels of oil equivalent per day from 170 wells, producing mainly from the Eagle Ford formation. The properties are adjacent to Hawkwood's current east Texas position, with the leasehold approximately 80% held by production and 90% operated, according to a Jan. 25 news release.
The transaction is effective as of Jan. 1 and is expected to be finalized by March 2017.
Upon deal closing, Hawkwood will control 180,000 net acres and over 1,000 commercial drilling locations in the Eagle Ford and Woodbine formations. The combined assets will produce 14,500 boe/d from 260 wells in the Eagle Ford, Woodbine, Austin Chalk and Buda formations.
"We are excited to acquire these high-quality assets and further expand our East Texas operations. This transformational acquisition is a significant step toward the implementation of our strategy to build a leading independent E&P company in the core of the East Texas basin," said Patrick Oenbring, chairman and CEO of Hawkwood.
As a result of the sale, Halcon Resources' portfolio of assets improved, Capital One Securities Inc. analysts said in a Jan. 25 note. “Post deal, [Halcon Resources] will remain one of the oiliest producers in our coverage universe with oil by percent of production expected between 75% and 80% going forward,” the analysts said.
Hawkwood is an independent oil and gas company mainly focused in East Texas.