Inpex to enter US tight oil development and production business

A subsidiary of Japanese firm Inpex has entered a deal to make its debut in the US tight oil development and production business.

Inpex Americas has signed an agreement to purchase multiple development and production assets in the Eagle Ford play in Texas from GulfTex Energy.

Most of the assets being acquired are located in Karnes County, which is regarded as a highly productive area within the Eagle Ford shale play.

The area is known for tight oil and shale gas development activity.

Following the completion of the deal, Inpex will assume operatorship of the project. The company will, however, have a non-operating interest in some of the assets.

Through the acquisition, the company intends to gain knowledge and insights on tight oil production in the US as an operator.

Inpex will use its existing tight reservoir development technologies to enhance the project value.

The company noted that the transaction is in line with its pursuit of ‘sustainable growth of oil and natural gas exploration and production (E&P) activities’.

In a statement, Inpex said: “The impact of this acquisition on the company’s consolidated financial results for the year ending March 2019 is nil.”

The acquisition will give around 13,000 acres in the Eagle Ford shale play with a net production of 7,600 barrels of oil equivalent per day (boed).

Apart from Eagle Ford, GulfTex Energy has operations in Austin Chalk in South Texas and the SCOOP in Oklahoma.

Inpex is an E&P company with interests in 70 projects across more than 20 countries.

The firm operates the Ichthys liquefied natural gas (LNG) project that liquefies gas from the Ichthys gas-condensate field located offshore Western Australia.

Gas from the offshore field is sent to an onshore gas liquefaction plant in Darwin, Northern Territory.