Page 4 - AsianOil Week 06 2021

AsianOil ASIA-PACIFIC AsianOil

Surge buys US shale assets, as

other Asian firms exit

FINANCE & HOUSTON-BASED Surge Energy US Holdings “The combination of both production and
INVESTMENT announced on January 31 that one of its subsidiar- high-quality inventory supports both near-term
ies had signed a purchase and sale agreement (PSA) cash flow and strong economic returns for years
to acquire leasehold interest and producing wells to come.”
from Grenadier Energy Partners II. The transac- The deal is expected to close later during
tion is estimated to be worth around $420mn. this quarter.
Surge was formed as a US subsidiary of Chi- According to Surge’s website, it currently
na-based Shandong Xinchao Energy to pursue holds 93,000 net acres (376 square km) in the
acquisitions in US shale. Permian Basin, where it has operated since 2015.
The assets are located in Texas’ Howard News of the latest acquisition comes as certain
County, in the Permian Basin’s Midland sub-ba- other Asian companies are pulling back from US
sin, and include production of around 9,000 shale. This week, Japan’s Sumitomo completed the
barrels of oil equivalent per day (boepd), with oil sale of its Eagle Ford shale assets, which were the
accounting for roughly 75% of this. The acqui- last of its shale operations following the sale of its
sition comprises 18,010 net acres (73 square operations in the Marcellus play last year.
km), and the operated inventory on the acreage Also this week, India’s Reliance Industries
includes about 120 economic drilling locations, Ltd. (RIL) agreed to sell its entire stake in the
which Surge described as high-quality. Marcellus shale for $250mn. The RIL assets will
“This acquisition is consistent with our strat- be sold to US-based Northern Oil and Gas. This
egy of building a long-term, sustainable oil and comes after RIL sold the first portion of its Mar-
gas company,” stated Surge’s CEO, Linhua Guan. cellus holdings in 2017.™

SOUTH ASIA

IEA scrutinises India’s gas-

based economy goals

POLICY WHILE Indian Prime Minister Narendra Modi done at a political level to achieve this. While
has said once again that he wants to see India inaugurating several oil and gas infrastructure
become a gas-based economy, the International projects in Haldia on February 7, Modi said: “A
Energy Agency (IEA) has said more needs to be gas-based economy is what India needs today.”

P4 www. NEWSBASE .com Week 06 11•February•2021