A unit of Indian conglomerate Reliance Industries Ltd. reported Monday that it has divested all of its unconventional natural gas assets and has exited North America.
Earlier this year Reliance pulled out of Appalachia.
The latest exit follows Ensign Natural Resources LLC’s buyout of Reliance Eagleford Upstream Holding LP’s working interest in leases and wells on about 62,000 net acres in the Eagle Ford Shale.
Ensign said it now owns 100% of the Eagle Ford acreage in the South Texas counties of Bee, DeWitt, Karnes and Live Oak. The exploration and production company, owned by private equity firms Warburg Pincus LLC and Kayne Anderson Capital Advisors LP, said the assets currently boast net production of 18,000 boe/d.
“Through our efforts over the last three years, we have created an asset that generates significant free cash flow and has a deep inventory of highly economic well locations in the core of the Eagle Ford Shale,” said Ensign CEO Brett Pennington.
Ensign said it acquired the leases and wells from Pioneer Natural Resources USA Inc. in 2019 and Mexico-based Newpek LLC the following year. Newpek parent Alfa had been seeking a buyer for Newpek’s Eagle Ford stake since 2017. Reliance had also owned interests in the acreage with Pioneer and Newpek, having entered the Eagle Ford 11 years ago in a $1.15 billion deal.
“We are excited to complete the puzzle with the acquisition of Reliance’s interest and now operate one of the premier assets in the basin,” said Pennington. “We look forward to future development of the asset and working closely with our service providers and landowners as we continue to grow the business in a safe and efficient manner.”
With the Reliance deal, Ensign said that it now owns and operates 130,000 Eagle Ford acres that produce nearly 40,000 boe/d from more than 700 wells.
© 2021 Natural Gas Intelligence. All rights reserved.
ISSN © 2577-9877 | ISSN © 2158-8023 |