Less than one month after expanding its holdings in South Texas, SilverBow Resources Inc. is adding about 5,500 net acres to build its natural gas and oil portfolio in the Eagle Ford Shale and Austin Chalk.
The Houston-based independent clinched the $87 million transaction with an undisclosed seller. The package “provides extended lateral lengths, increased drilling locations and enhanced returns for our optimized development program,” CEO Sean Woolverton said.

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“This transaction fits our disciplined growth strategy of adding production at attractive valuations and increasing our high-quality inventory across both the Eagle Ford and Austin Chalk formations. The acquisition is a mix of incremental working interest on our existing acreage, as well as new adjacent acreage…”
Last month SilverBow acquired 7,500 gas-rich net acres in South Texas  in the Dorado play in Webb County near the Mexico border. 

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“We continue to build scale and increase cash flows through accretive acquisitions,” Woolverton said. “This marks the seventh transaction we have announced since August of last year, and the second strategic bolt-on in SilverBow’s liquids weighted position in the Karnes trough. The enhanced economics from this transaction supports further oil development in this area in 2023.” 

According to SilverBow, the new package of assets in Dewitt and Gonzales counties was producing 1,100 boe/d net in June. It also touted “significant upside in Austin Chalk, which has been de-risked with one well in the center of an acreage block having produced over 200,000 bbl oil to date.

In combination with its existing position, the new acquisition “creates a consolidated 13,000 net acre block,” the company said. The combined position “allows optimized development allowing for 70,000 additional lateral feet to be drilled with 12 fewer wells.”

The acquisition is expected to be completed by year’s end.