Japan Petroleum Exploration (JAPEX) has resolved to acquire the entire equity interest in Verdad Resources Intermediate Holdings LLC (VRIH), which holds tight oil and gas assets in the U.S., through Peoria Resources Acquisition Company, LLC (AcquCo) managed by Peoria Resources LLC (Peoria), an overseas subsidiary, thereby making VRIH a consolidated subsidiary (sub-subsidiary). The assets include those VRIH acts as the operator. JAPEX will engage in the E&P business in the U.S. as the operator through Peoria and AcquCo.
JAPEX participates in tight oil development in the U.S. as a non-operator through its overseas consolidated subsidiary, Japex (U.S.) Corp. To further expand E&P business in the U.S. and pursue sustainable profitability, JAPEX has established Peoria to acquire and manage operator assets that enable it to advance projects proactively and strategically, and has deliberated extensively.
JAPEX has now decided to acquire, through AcquCo, the entire interest in VRIH, which holds tight oil and gas assets in Colorado and Wyoming, U.S., from Verdad Resources Feeder LLC (VRFL). We plan to promptly conclude the Membership Interest Purchase Agreement with VRFL and proceed with the necessary procedures. With this acquisition, JAPEX, through Peoria and AcquCo, will develop and produce tight oil and gas as the operator.
The current production volume of the tight oil and gas asset acquired is approximately 35,000 boed (net, with 70% being light crude oil and NGL). Through future additional development, production is expected to increase to approximately 50,000 boed (same as above) around 2030.
JAPEX, Peoria and AcquCo will continue to pursue further business expansion and profit sustainability in the U.S. through the acquisition of operator assets.
The Acquisition Price is approx. US$1.3 billion (Planned to be funded by JAPEX’s own funds and borrowings)
Source: JAPEX
