Hawkwood Energy East Texas, a unit of independent oil and gas firm Hawkwood Energy, has agreed to acquire producing and non-producing assets from subsidiaries of Halcon Resources for $500m.
Under the terms of the deal, Hawkwood will acquire assets include approximately 81,000 net acres primarily located in Burleson and Brazos counties.
These assets have current gross production capacity of 9,200 Boe/d from 170 wells producing primarily from the Eagle Ford formation, the company said.
Hawkwood expects the high-quality assets to further expand is East Texas operations.
Hawkwood chairman and CEO Patrick Oenbring said: "This transformational acquisition is a significant step toward the implementation of our strategy to build a leading independent E&P company in the core of the East Texas basin.”
Upon completion of the deal, the firm is planning to develop the newly acquired assets along with its ongoing capital program for existing properties.
Oenbring added: “We are excited to combine the basin's strong and improving economics with our low cost operating infrastructure and experienced technical team.
“We will operate these new assets with the same uncompromising approach to safety, the environment, and community relations that we have employed on all of our assets since we commenced operations in East Texas in 2014."
Hawkwood said that the properties being acquired are generally contiguous and adjacent to its existing East Texas position.
The combined assets are estimated to have gross production of 14,500 Boe/d from 260 wells in the Eagle Ford, Woodbine, Austin Chalk and Buda formations.
The transaction is planned to be completed in March 2017.