Japan Petroleum Exploration Co. (Japex) is expanding its E&P business in the US with the $1.3-billion purchase of tight oil and gas company Verdad Resources Intermediate Holdings (VRIH), marking its largest deal and first operated US assets.
Japex has held nonoperated stakes in the Eagle Ford Shale in Texas since 2012 and Woodford Shale in Oklahoma since around 2022.
Japex announced the deal, which is being made through its Peoria Resources Acquisition Company subsidiary and being funded through Japex’s own funds and borrowed money, on 18 December.
The Peoria Resources subsidiary will manage the tight oil and gas assets in Colorado and Wyoming, which currently produce about 35,000 BOEPD. Continuous planned development of the assets in the Denver-Julesburg (DJ) Basin is expected to raise output to about 50,000 BOEPD around 2030, according to Japex.
The assets included in the deal produce a mix of 49% light oil, 24% natural gas liquids, and 27% natural gas from the Niobrara and Codell formations in the DJ Basin. More than 1,000 wells are in production, with about the same number planned.
The operated assets span about 125,000 gross acres, while the nonoperated assets span approximately 127,000 gross acres.
Japex expects to acquire VRIH’s equity interest around the end of February 2026. Peoria employees will lead production and development to launch the operator business. In addition to employees already hired at Peoria by the end of February 2026, recruitment efforts will also target VRIH employees primarily engaged in operations, with plans to secure approximately 50 personnel required for the development and operation of the assets.
