American Oil and Gas Reporter - March 2023 - 57

SpecialReport: Eagle Ford Playmakers
" The deal marks our entry into the
U.S. market and is another significant
step in the INEOS Energy journey, " INEOS
Energy Chairman Brian Gilvary
said in announcing the transaction with
Chesapeake. " Over the last two decades,
U.S. onshore oil and gas production has
provided security of supply for the global
market and a competitive advantage for
the U.S. industry. We believe this acquisition
will help us to serve our internal
and external customers today as we continue
to position our business to meet the
energy transition. "
Baytex Energy's definitive agreement
to acquire pure-play Eagle Ford operator
Ranger Oil is also expected to close in
the second quarter. Commenting on the
move, Baytex President and CEO Eric T.
Greager described the Ranger acquisition
as strategic. " We are acquiring a strong
operating capability in the Eagle Ford,
on-trend with our nonoperated position
in the Karnes Trough and driving meaningful
per-share accretion on all metrics, "
he related.
The transaction gives Baytex 12-15
years of quality oil-weighted drilling opportunities
in a premier basin, more than
doubles its EBITDA, and nearly doubles
its free cash flow while enhancing its
quality scale and lowering breakeven cost.
" The additional asset inventory immediately
competes for capital in our
portfolio, " Greager remarked. " We are
building an even stronger Canadian energy
company with a high-quality diversified
oil-weighted portfolio across the Western
Canadian Sedimentary Basin and the
Eagle Ford. "
The transaction includes 162,000 net
acres in a premier basin in the crude oil
window in Texas' Gonzales, Lavaca,
Fayette, and Dewitt counties, and production
of 67,000-70,000 boe/d (72%
light oil, 15% NGLs and 13% natural
gas) with 174 million boe of proved reserves
(including 120 million barrels of
oil) and 258 million boe of proved plus
probable reserve upside.
According to the company, the 741
After Crescent Pass Energy LLC entered the northern part of the Eagle Ford play
through a property acquisition in 2021, the company began zeroing in on a strategy to
refracture horizontal wells. Its refrac program resulted in a year-end 2022 exit field
production rate that was 15% higher than the original base production forecast. Crescent
Pass plans to continue a bullhead refrac program using chemical and physical diverters,
but also has two cemented liner refracs scheduled for this summer.
estimated net undrilled locations include
523 Lower Eagle Ford opportunities and
218 additional Upper Eagle Ford and
Austin Chalk opportunities. Lower Eagle
Ford locations are expected to generate
internal rates of return greater than 75%
and payouts sooner than 18 months at a
$75/bbl WTI price, and Baytex projects
that it can grow production modestly
from the acquired assets with two rigs
and 50-55 net wells a year.
In January, privately held WildFire
Energy announced the acquisition of
377,000 net acres and 1,350 wells in the
Brazos Valley region from Chesapeake
Energy. With the acquisition, WildFire
will operate some 2,000 gross wells on
approximately 600,000 net acres in the
eastern Eagle Ford in Texas' Burleson,
Brazos, Robertson, Madison, Lee, Washington,
and Grimes counties.
The acquired Brazos Valley acreage
had an average net daily production of
27,700 boe (85% liquids) during the third
quarter of 2022 and net proved reserves
of 96.8 MMboe as of year-end 2021.
The deal follows WildFire's acquisitions
of MD America Energy in March 2022
and Hawkwood Energy in August 2021.
" This acquisition is highly synergistic
with our existing assets and the combined
size of the overall business positions
WildFire as a leading operator in the
eastern Eagle Ford, " President and Chief
Operating Officer Steve Habachy remarked.
" The consolidation of 600,000
contiguous acres is transformative to the
business and will drive economies of
scale to deliver more high margin barrels
to the advantageous Gulf Coast market. "
" We look forward to future development
of the area as we grow the business
in a safe, efficient and environmentally
conscientious manner alongside our service
providers and landowners, " added
Wildfire CEO Anthony Bahr. " We are
extremely appreciative of our sponsors,
Warburg Pincus and Kayne Anderson,
who have shared our vision of building
strategic scale in the eastern Eagle Ford
Basin and have supported us throughout
the process. "
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MARCH 2023 57
American Oil and Gas Reporter - March 2023

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