US: Vitol’s Vencer Energy makes first investment to acquire Midland Basin assets
03 May 2021
Vencer Energy, has agreed to acquire
Hunt Oil Company’s Midland Basin assets for an undisclosed sum. It is Vencer’s first acquisition since it was established by Vitol last year.
The assets comprise 44,000 acres across five counties in the Midland Basin, with current daily production of approx. 40 mboepd.
Don Dotson, President and CEO, Vencer said: We are delighted with this acquisition which realizes our vision for Vencer as the owner of quality, mature, producing assets with attractive development opportunities. We look forward to working with our new colleagues.
By Reuters Staff
(Corrects unit in second paragraph)
April 30 (Reuters) - Energy trader Vitol on Friday said its U.S. upstream company, Vencer Energy LLC, has announced it has agreed to acquire Hunt Oil Company’s Midland Basin assets for an undisclosed sum.
The assets comprise 44,000 acres across five counties in the Midland Basin, with current daily production of about 40,000 barrels of oil equivalent per day (mboepd), Vitol said in a statement. (Reporting by Arpan Varghese in Bengaluru and Julia Payne in London)
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The assets, acquired by Vitol s Vencer Energy, cover 44,000 acres across five counties in the Midland Basin, with current production of about 40,000 boe/d, Vitol said in an April 30 statement. No financial details of the deal were given.
The Permian, which spans West Texas and southeastern New Mexico, is a prolific shale play with several sub-territories, including the Midland Basin. While oil is the main lure for drillers, significant amounts of associated gas are being lifted with the crude. That gas is increasingly being moved southward across the border to Mexico for use in electricity generation and eastward to Gulf Coast demand markets for use in producing LNG for export.
Vitol Enters Into Permian Shale With Hunt Oil Deal
David Wethe, Bloomberg News A natural gas well being drilled in the Eagle Ford shale in Karnes County, Texas. , Photographer: Eddie Seal/Bloomberg
(Bloomberg) Vitol Group is buying Hunt Oil Co.âs Permian Basin business as the biggest independent crude trader makes a major move into the worldâs busiest shale patch.
The deal includes 44,000 acres across five counties in the Midland Basin of West Texas with the equivalent daily output of about 40,000 barrels of oil a day, the company said in a statement on Friday. Itâs the first acquisition for Vencer Energy LLC, the U.S. oil exploration unit formed by Vitol last year. While a purchase price was not disclosed, earlier in the week Huntâs Permian assets were said to possibly command more than $1 billion, according to a person with knowledge of the matter.
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