SilverBow Resources wraps up $71m deal with SandPoint Resources
SilverBow Resources, a Houston-based upstream company, has wrapped up the previously announced $71 million acquisition of certain assets of SandPoint Operating, a subsidiary of SandPoint Resources.
The consideration for the acquisition is made up of nearly $31 million in cash and 1.3 million shares of SilverBow Resources.
The cash part of the acquisition was funded with cash on hand and borrowings under SilverBow Resources’ revolving credit facility.
As per the deal announced last month, SilverBow Resources acquired certain oil and gas assets of SandPoint Operating that target the Eagle Ford and Olmos formations across the La Salle and McMullen counties.
The acquisition gave contiguous acreage of around 27,000 net acres in the two counties for SilverBow Resources.
The estimated production from the acreage for this month is 4,650 barrels of oil equivalent per day (Boe/d), of which 70% is gas and 30% is liquids. A couple of new wells are expected to brought online in Q2 2022.