NorthAmOil: INEOS to buy $1.4bn in oil and gas assets in Eagle Ford play

INEOS Energy is entering US oil and gas production for the first time with the acquisition of a portion of Chesapeake Energy’s remaining oil and gas assets in the Eagle Ford shale, located in southern Texas, for $1.4bn.

The UK chemical manufacturer will acquire 2,300 wells, which produced a net of 36,000 barrels of oil equivalent per day (boepd), 81% liquid, in the fourth quarter of 2022. As of December 31, 2022, net proven reserves associated with these properties were approximately 144mn barrels of oil equivalent (boe).

The acquisition, which includes production and exploration leases across 172,000 net acres (70 hectares) primarily in Dimmit, LaSalle and McMullen Counties, is expected to be completed in the second quarter of 2023, with an effective date of October 2022.

The addition of Chesapeake's assets and operations in south Texas is part of INEOS’s strategy to build a global integrated portfolio that is fit for the energy transition and which offers high-quality energy solutions to its customers, the company said.