Crescent Energy has signed an agreement with Verdun Oil Company II to purchase Uinta basin assets in Utah, US, for $815m.

The assets were earlier owned by EP Energy.

Under the deal, Crescent will acquire over 145,000 contiguous net acres, primarily situated in Duchesne and Uintah counties.

The transaction includes acquisition of more than 400 producing vertical and horizontal wells.

Uinta basin is estimated to hold a significant amount of resource across multiple stacked reservoirs, thereby offering long-term resource potential beyond the horizontal targets.

Crescent CEO David Rockecharlie said: “We are acquiring these assets at a compelling valuation. They are a great addition to our existing Rockies footprint and align perfectly with our cash flow based strategy.

“Importantly, this transaction maintains our commitment to financial strength and flexibility while adding meaningful scale to our low-decline production base, free cash flow and proven inventory of highly economic re-investment opportunity.”

Upon the closing of the deal, Crescent intends to operate two rigs in the Uinta Basin for the remaining period of the year.

The capital expected to be invested for this programme is between $225m and $275m.

The deal is anticipated to provide Crescent with a multi-year inventory of high value and oil-weighted development opportunities.

Subject to customary closing conditions including certain regulatory approvals, the all-cash deal is expected to be completed in the first half of 2022.

Crescent stated that the transaction will be funded with borrowings under the company’s revolving credit facility and cash on hand.

The acquisition is part of the company’s strategy to acquire high-value and accretive, cash flowing assets.

The US independent energy company holds a portfolio of assets in key proven basins across the lower 48 states.