Peoria Resources, LLC Acquires New Oil and Gas Business
HOUSTON /PRNewswire/ -- Peoria Resources, LLC ("Peoria"), a subsidiary of JAPEX (U.S.) Corp. ("JUS"), proudly announces the signing of a Membership Interest Purchase Agreement ("MIPA") to acquire the operated oil and gas business of Verdad Resources Intermediate Holdings, LLC ("Verdad"). This strategic action enhances Peoria's assets within the prominent Colorado DJ Basin, crucial for the ongoing expansion and development of their operational capacity.
Strategic Alignment and Future Plans
Peoria's acquisition strategy is designed to strengthen its position in the market by securing operated assets and leasehold acquisitions throughout the continental United States. The acquisition aligns seamlessly with these ambitions, marking a significant step in Peoria's growth trajectory and operational scale.
CEO's Perspective on the Acquisition
Greg West, Peoria's Chief Executive Officer, expressed enthusiasm over the new venture: "We are excited to embark on this agreement, enhancing our portfolio with a substantial asset that embodies size, scale, and operational efficiency. With 101,000 net acres at our disposal, we believe this acquisition will bolster our development potential and improve overall margins, enhancing our market access and profitability. Our focus is not only on immediate returns but also on building a sustainable, long-term operational excellence that assures consistent cash flow and investment opportunities for our stakeholders over time."
Growth Through Collaboration
David Kita, the Chief Technical Officer of Peoria, emphasized the significance of the moment by stating, "The collaborative efforts between Peoria and JUS highlight our shared vision for acquiring valuable assets in the U.S. onshore oil and gas market. This acquisition marks a pivotal point in our journey and reinforces our commitment to future investments in this sector."
A Strong Foundation in the Market
Tetsuo Fukuhara, President of JUS, shared insights about the implications of the deal: "Acquiring such a cornerstone asset is a strategic move that positions Peoria well within the competitive landscape of U.S. onshore operations. The experienced team at Peoria, paired with the quality of assets obtained, lays a solid groundwork for further advancements in our operational pursuits in the U.S."
Continued Commitment to the U.S. Market
Josh Karim, Chief Operating Officer of JUS, reiterated their ongoing commitment to the American oil and gas market, saying, "Our journey with Peoria is just beginning. The acquisition of Verdad's assets is indicative of our intent to cultivate a robust and sustainable business model in the U.S. that ensures promising returns for years to come."
In this transaction, Wells Fargo Securities, LLC provided exclusive financial advisory services to Peoria, while Willkie Farr & Gallagher LLP acted as the legal counsel. On the other hand, JP Morgan Securities LLC served as the exclusive financial advisor to Verdad, with Kirkland & Ellis LLP providing legal assistance for the transaction.
About Peoria Resources, LLC
Based in Houston, Peoria Resources specializes in the exploration and production of oil and natural gas assets across the continental United States. Co-founders Greg West and David Kita lead the management team with extensive industry experience and commitment to operational excellence. For further details about Peoria Resources, please visit their official webpage.
About JAPEX (U.S.) Corp.
Established in 1980, JAPEX (U.S.) Corp. operates as a Houston-based overseas subsidiary focused on investments in the U.S. energy sector. Their ongoing mission is to ensure impactful contributions within the domain of domestic energy resources.
Frequently Asked Questions
What is the purpose of the Membership Interest Purchase Agreement?
The MIPA allows Peoria Resources to acquire the oil and gas business of Verdad Resources, enhancing Peoria's operational capacity and asset portfolio in the DJ Basin.
What are the key assets included in this acquisition?
The acquisition includes 101,000 net acres of high-quality operational land with stacked pay development potential, aimed at enhancing Peoria's production capacity.
Who were the advisors involved in the transaction?
Wells Fargo Securities served as the financial advisor for Peoria, while JP Morgan Securities advised Verdad. Legal services were provided by Willkie Farr & Gallagher for Peoria and Kirkland & Ellis for Verdad.
What does this acquisition mean for Peoria Resources?
This deal represents a major milestone, allowing Peoria to scale its operations and enhance its market competitiveness in the U.S. oil and gas sector.
How does this fit into the broader strategy of JAPEX (U.S.) Corp.?
This acquisition aligns with JAPEX's broader strategy to expand its footprint in the U.S. energy market, showcasing its commitment to sustainable growth and strong investment returns.
