Surge Energy US Holdings Co. has agreed to pay $420 million for leasehold interest and producing wells in Howard County, Texas.
The seller was Grenadier Energy Partners II (GEP II), an upstream oil and gas company headquartered in The Woodlands, Texas.
The assets have an average production of 9,000 barrels of oil equivalent per day — 75 percent oil —18,010 net leasehold acres and roughly 120 high-quality, economic future drilling locations.
“This acquisition is consistent with our strategy of building a long-term, sustainable oil and gas company,” said Linhua Guan, CEO of Surge. “The combination of both production and high-quality inventory support both near-term cash flow and strong economic returns for years to come.”
The transaction is expected to close late in the first quarter of 2021.