Japan Petroleum Exploration Corporation (JAPEX) announced Dec. 19, its $1.3 billion acquisition of tight oil and gas assets in the DJ Basin of Colorado with the purchase of Verdad Resources Intermediate Holdings by Peoria Resources, a subsidiary of JAPEX (U.S.) Corp.
The purchase includes 101,000 net acres and its associated stacked pay development in Colorado, as well as Wyoming, producing 35,000 barrels of oil equivalent per day (with 70 percent light crude oil and NGL).
Peoria is a JAPEX vehicle for acquisition and development of operated oil and gas assets in the Lower 48. Both JAPEX (U.S.) and Peoria are both based in Houston. Japan Petroleum Exploration Co. Ltd. is headquartered in Tokyo.
Wells Fargo Securities is exclusive financial advisor to Peoria. JP Morgan Securities is advising Verdad.
Willkie Farr & Gallagher is outside legal counsel to Peoria led from Houston by partners Brad Honeycutt and Tan Lu, alongside counsel Emerson Girardeau and associate Braxton Smith
Kirkland & Ellis advised Verdad Resources.
Said David Kita, Peoria’s chief technical officer: “Peoria and JUS partnered earlier this year to pursue the acquisition of operated U.S. onshore oil and gas assets. This acquisition represents a key milestone in that partnership and establishes a strong foundation for continued investment in the U.S. onshore oil and gas sector.”