Houston, Texas – September 13, 2021
SilverBow Resources, a Houston-based oil and gas company, has recently revealed its plans to acquire valuable oil and gas assets in South Texas from Chesapeake Energy. The deal, worth a staggering $700 million, is expected to be finalized by the end of this year.
Under the terms of the agreement, SilverBow Resources will pay $650 million upfront in cash, with an additional $50 million to be paid one year after the transaction is complete. The acquisition includes 42,000 net acres and approximately 540 wells in South Texas, which produced an impressive 29,000 barrels of oil equivalent per day during the second quarter of this year.
To finance this major purchase, SilverBow Resources will utilize a combination of cash reserves and debt. The company has secured an additional $425 million in debt through its existing credit facility.
This significant sale comes as part of Chesapeake Energy’s strategy to shift its focus onto its Marcellus and Haynesville positions. The Oklahoma City-based energy company’s CEO, Nick Dell’Osso, stated that the proceeds from the sale of its Eagle Ford assets now total an impressive $3.5 billion.