SilverBow Resources Announces Bolt-On Acquisition Expanding Premier Liquids Weighted Position in DeWitt and Gonzales Counties
October 03 2022 - 8:30AM
Business Wire
SilverBow Resources, Inc. (NYSE: SBOW) (“SilverBow” or “the
Company”) announced today it has entered into a definitive
agreement to acquire oil and gas assets in DeWitt and Gonzales
counties (the “Acquisition” or “Transaction”) from an undisclosed
seller for a cash purchase price of $87 million, subject to
customary closing adjustments.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20221003005281/en/
Combined acreage position: SilverBow's
current assets across DeWitt, Gonzales and Lavaca counties.
(Graphic: Business Wire)
Acquisition Highlights:
- Transaction comprised of incremental working interest on
SilverBow’s existing acreage as well as new adjacent acreage;
provides for extended laterals, additional inventory locations and
more efficient development
- June 2022 net production of approximately 1,100 barrels of oil
equivalent per day; 44% oil
- Adds 5,200 net acres in the proven highly economic oil and
condensate windows of Dewitt and Gonzales counties
- Significant upside in Austin Chalk, which has been de-risked
with one well in center of acreage block having produced over
200,000 barrels of oil to date
- In combination with existing position, Acquisition creates
consolidated 13,000 net acre block with 100 high rate of return
drilling locations
- Combined position allows optimized development allowing for
70,000 additional lateral feet to be drilled with 12 fewer wells;
optimized development significantly improves capital
efficiency
MANAGEMENT COMMENTS
Sean Woolverton, SilverBow’s Chief Executive Officer, commented,
“This transaction fits our disciplined growth strategy of adding
production at attractive valuations and increasing our high-quality
inventory across both the Eagle Ford and Austin Chalk formations.
The acquisition is a mix of incremental working interest on our
existing acreage as well as new adjacent acreage, which provides
for extended lateral lengths, increased drilling locations and
enhanced returns for our optimized development program.”
Mr. Woolverton commented further, “We continue to build scale
and increase cash flows through accretive acquisitions. This marks
the seventh transaction we have announced since August of last
year, and the second strategic bolt-on in SilverBow’s liquids
weighted position in the Karnes trough. The enhanced economics from
this transaction supports further oil development in this area in
2023. SilverBow continues to identify and execute on strategic
opportunities that maximize free cash flow and increase stakeholder
value.”
TRANSACTION DETAILS
The Acquisition has an effective date of June 1, 2022, and is
expected to close in the fourth quarter of 2022. The total purchase
price is approximately $87 million in cash, subject to customary
closing adjustments. SilverBow intends to fund the Acquisition and
related fees and expenses with cash on hand and borrowings under
its revolving credit facility.
ABOUT SILVERBOW RESOURCES, INC.
SilverBow Resources, Inc. (NYSE: SBOW) is a Houston-based energy
company actively engaged in the exploration, development, and
production of oil and gas in the Eagle Ford Shale and Austin Chalk
in South Texas. With over 30 years of history operating in South
Texas, the Company possesses a significant understanding of
regional reservoirs which it leverages to assemble high quality
drilling inventory while continuously enhancing its operations to
maximize returns on capital invested. For more information, please
visit www.sbow.com. Information on the Company’s website is not
part of this release.
FORWARD-LOOKING STATEMENTS
This release includes “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
These forward-looking statements represent management's
expectations or beliefs concerning future events, and it is
possible that the results described in this release will not be
achieved. These forward-looking statements are based on current
expectations and assumptions and are subject to a number of risks
and uncertainties, many of which are beyond our control. Important
factors that could cause actual results to differ materially from
our expectations include, but are not limited to, risks and
uncertainties discussed in the Company’s reports filed with the
Securities and Exchange Commission. All forward-looking statements
speak only as of the date of this news release. You should not
place undue reliance on these forward-looking statements.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221003005281/en/
Jeff Magids Director of Finance & Investor Relations (281)
874-2700, (888) 991-SBOW
SilverBow Resources (NYSE:SBOW)
Historical Stock Chart
From Jun 2024 to Jul 2024
SilverBow Resources (NYSE:SBOW)
Historical Stock Chart
From Jul 2023 to Jul 2024