A unit of Japan’s Sumitomo Corp. has increased its holdings in the Eagle Ford Shale, which it said would expand its operating capacity.

Sumitomo’s Summit Discovery Resources II LLC (SDRII), based in Houston, reached an agreement to acquire South Texas properties from IOG Gonzales 1835 LLC, an entity managed by IOG Capital LP, Covington Equity Investments LLC and 1836 Resources LLC. Financial details were not disclosed.

As a result of the transaction, SDRII would become the 100% working interest owner and operator of the asset, which runs across 624 acres in Karnes County, Sumitomo said. Peak production of the leasehold is estimated at 3,000 boe/d.

“This strategic acquisition will allow SDRII to build its operating capacity and experience for future growth through operating existing producing wells and future well development,” Sumitomo said.

Sumitomo subsidiaries have been working with U.S. onshore explorers for years.

In 2009, the Japanese trading house bought a 12.5% stake in Carrizo Oil & Gas Inc.’s Barnett Shale drilling units. One year later subsidiary SDRII bought into part of Rex Energy Corp.’s Marcellus Shale leasehold in Pennsylvania. Six years ago Devon Energy Corp. brought Sumitomo onboard to work part of its Permian Basin leasehold.

Dallas-based IOG Capital, run by Marc Rowland, has an array of partnerships in the U.S. onshore to develop conventional and unconventional assets. As of June, IOG said it had deployed more than $800 million in more than 450 oil and gas wells across four states and 22 counties.

In the Eagle Ford, IOG last year established a joint development agreement with Earthstone Energy Inc., initially to develop wells in Gonzales County.