The acquisition will enhance Validus' production capacity by adding more than 25 000 boe/d reported Reuters, citing sources.
It will solidify Validus Energy’s position as one of the largest private players in the US mid-continent oil region, adding to the company’s footprint in the Anadarko shale basin in Oklahoma.
The output of 89 Energy III is 70% gas, as stated on its website.
The company was established in May 2021 through a merger of three oil and gas producers in the mid-continent region, facilitated by private equity firm Kayne Anderson.
During that period, energy-focused buyout companies aimed to reduce costs by consolidating portfolio companies following the drop in energy prices caused by the COVID-19 pandemic.
This strategy has proven beneficial as it has enabled companies to achieve scale and become more appealing acquisition targets amid the recovery of oil prices in subsequent years.
The mid-continent region has experienced a surge in deal activity recently, supported by a more cautious approach to drilling compared with the late 2010s.
The region's rich natural gas reserves are attracting renewed investor interest, driven by expectations of increased demand for power generation to support data centres.
Validus Energy, which is backed by institutional investors and its management team, has been one of the most active buyers in the ongoing mid-continent dealmaking trend.
Last year, Validus agreed to acquire Citizen Energy for more than US$2 billion from Warburg Pincus. Validus previously purchased assets in the same oilfield from Continental Resources.
Read the latest issue of Oilfield Technology magazine for upstream news, project stories, industry insight and technical articles.
Oilfield Technology’s January/February 2025 issue
The January/February 2025 issue of Oilfield Technology includes keynote articles on enhancing offshore safety and risk management; technical articles on digital technology, drilling, EOR, and flow control. We also cover predictive maintenance, and production monitoring.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/17022025/validus-energy-to-acquire-89-energy-iii-for-us850-million/