A new Texas energy company has purchased oil and gas assets and drilling rights for more than 100,000 acres in northern Louisiana and southern Arkansas, DallasNews reports.
Frisco-based Velandera Energy Partners LLC was formed by investors of Texas private equity firm Schanti Partners for the purpose of buying the assets from Spring-based Southwestern Energy Co., the newspaper reports.
DallasNews reports the price of the all-cash transaction wasn’t disclosed. Velandera plans to acquire more oil and gas assets, said Manish Raj, chief financial officer of Velandera and a Schanti principal. Velandera plans to spend $100 million to drill 20 additional wells.
Southwestern Energy, which has been selling assets and plans to focus on the Appalachia region, told Bloomberg News that it had invested $600 million in the property. The present value of the proven oil and gas reserves that Velandera purchased is more than $600 million.
“While all the attention has been on Texas’ Permian Basin, we think it’s very expensive,” Raj told DallasNews. “Northern Louisiana is also oil-rich and equally as attractive with less competitive pricing.”