Hawkwood Energy, LLC (“Hawkwood”), an independent oil and gas company primarily focused in East Texas, announced today that it has reached a definitive agreement for its wholly-owned subsidiary Hawkwood Energy East Texas, LLC to acquire producing and non-producing assets from subsidiaries of Halcon Resources for $500 MM. The transaction has an effective date of January 1, 2017 and is expected to close in March 2017.
The assets to be acquired include approximately 81,000 net acres primarily located in Burleson and Brazos counties, with current gross production of 9,200 Boe/d (80% oil) from 170 wells producing primarily from the Eagle Ford formation. The leasehold position is approximately 80% held by production and 90% operated. The properties are generally contiguous and adjacent to Hawkwood’s existing East Texas position. Gross production from the combined assets will be 14,500 Boe/d (83% oil) from 260 wells in the Eagle Ford, Woodbine, Austin Chalk and Buda formations, and Hawkwood will control more than 180,000 net acres and over 1,000 commercial drilling locations in the Eagle Ford and Woodbine formations.
“We are excited to acquire these high-quality assets and further expand our East Texas operations. 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,” said Patrick Oenbring, Chairman and Chief Executive Officer of Hawkwood. “We plan to actively develop these new assets concurrently with our ongoing capital program for our existing properties. 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.”