On Sunday, China’s Shandong Xinchao announced its decision to shell out $420 million to purchase oil-producing acreage from Grenadier Energy in the Texas Permian Basin.
Or rather, Surge Energy of Houston made the announcement via PR Newswire.
HOUSTON, Jan. 31, 2021 /PRNewswire/ — Surge Energy US Holdings Company (“Surge Energy” or the “Company”) announced in the US that it, through its subsidiary, has signed a purchase and sale agreement to acquire leasehold interest and producing wells from Grenadier Energy Partners II LLC (“GEP II”) in Howard County, TX (the “Transaction”). The aggregate purchase price of the Transaction is expected to be approximately $420 million USD.
Highlights of the acquired assets include:
- Average production of approximately 9,000 Boepd (approximately 75% oil)
- Approximately 18,010 net leasehold acres
- Operated inventory of approximately 120 high-quality, economic future drilling locations
The Transaction is expected to close in late first quarter.
Read the entire release and you’ll not see the words “Shandong Xinchao” in it. But Surge is that company’s creation and wholly owned subsidiary. That’s disclosed on Surge’s corporate website. – READ MORE
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