Japex to acquire US tight oil and gas producer VRIH for $1.3bn

Acquisition Overview - Japan Petroleum Exploration (Japex) plans to acquire Verdad Resources Intermediate Holdings (VRIH) for approximately $1.3 billion (Y204 billion) [1] - The acquisition will be executed through Japex's subsidiary, Peoria Resources Acquisition Company, making VRIH a consolidated subsidiary of Japex [1] Asset Details - VRIH owns tight oil and gas assets in Colorado and Wyoming, covering around 125,000 gross acres operated and approximately 127,000 gross acres non-operated [2] - The assets currently produce about 35,000 barrels of oil per day (bopd), with 70% of the output being light crude oil and natural gas liquids (NGLs) [2] Financial and Strategic Plans - Japex intends to finance the acquisition using a combination of its own funds and debt, aiming for completion by February 2026, subject to customary closing conditions [3] - Future development of VRIH's assets could potentially increase production to nearly 50,000 bopd by 2030, with a focus on the Codell and Niobrara formations [3] Company Background - VRIH, founded in May 2017, had net assets valued at $966.23 million as of December 31, 2024, with revenues of $825.03 million and operating income of $341.26 million for the fiscal year ending December 31, 2024 [4] - Japex has announced a strategic shift to prioritize oil and gas exploration and production investments through 2030 [4]