WildFire Energy acquires key Eagle Ford assets from Apache Corporation in strategic expansion
WildFire Energy I LLC (“WildFire”) has announced a definitive agreement to acquire significant oil and gas assets from Apache Corporation, encompassing approximately 237,000 net acres and interests in 465 wells located in the East Texas Eagle Ford region. This strategic acquisition propels WildFire to a dominant position in the area, operating over 2,000 gross wells across more than 850,000 net acres.
Key Acquisition Details
The assets acquired from Apache Corporation bring WildFire’s holdings to an impressive scale, spanning counties such as Fayette, Bastrop, Lee, Austin, and several others in Texas. These assets also include about 550,000 net acres in the Austin Chalk formation, along with other formations like Woodbine, Buda, and Georgetown. As of the first quarter of 2024, these assets have an average net daily production of 11,000 barrels of oil equivalent (Boe), with 67% of it being liquid hydrocarbons.
Financial and Operational Impact
WildFire estimates that the net proved reserves of the acquired assets were approximately 40 million barrels of oil equivalent as of December 31, 2023. With this acquisition, WildFire’s net daily production is expected to exceed 50,000 barrels of oil equivalent, maintaining a significant liquid composition of 85%. This substantial increase in production capacity underlines WildFire’s commitment to expanding its operational footprint and enhancing its market competitiveness.
WildFire Energy announces strategic acquisition of Apache Corporation’s Eagle Ford assets to enhance its position as a leading operator in the Texas oil and gas sector.
Steve Habachy, President and Chief Operating Officer of WildFire, emphasized the strategic nature of the acquisition, stating, “This acquisition of adjacent assets presented us with a strategic opportunity to continue consolidating the basin. With a total of more than 850,000 net acres, we have built a premier contiguous asset base, making WildFire the largest operator in the entire Eagle Ford trend.”
Strategic Consolidation and Growth
This latest acquisition is part of WildFire’s broader strategy to consolidate and optimize its presence in the Eagle Ford basin. Following previous acquisitions, including Chesapeake Energy Corporation’s Brazos Valley region assets in March 2023, MD America Energy, LLC in March 2022, and Hawkwood Energy, LLC in August 2021, WildFire has significantly expanded its operational scope and infrastructure capabilities.
Industry Implications
The consolidation efforts by WildFire not only enhance its production capabilities but also position the company to capitalize on synergies across its expanded asset base. This strategic move is expected to deliver improved operational efficiency and cost-effectiveness, boosting WildFire’s standing in the competitive energy market.