Houston-based Crescent Energy acquires Uinta Basin oil assets

The blue part of the map is the over 145,000 acres of oil-producing land being acquired by Crescent Energy. Photo: Crescent Energy Company

HOUSTON — Crescent Energy Company, based in Houston, Texas, has entered into a definitive purchase agreement with Verdun Oil Company to acquire over 400 oil-producing wells in the Uinta Basin for $815 million.

Crescent describes itself as “a well-capitalized, U.S. independent energy company with a portfolio of assets in key proven basins across the lower 48 states.”

The all-cash transaction is expected to close in the first half of 2022. The acquisition will give the company more than 145,000 contiguous net acres, primarily located in Duchesne and Uintah counties. The area currently contains over 400 producing vertical and horizontal oil wells. Over 1,800 wells have been drilled on the land in the past.

“We are acquiring these assets at a compelling valuation. They are a great addition to our existing Rockies footprint and align perfectly with our cash flow based strategy,” said Crescent CEO David Rockecharlie. “Importantly, this transaction maintains our commitment to financial strength and flexibility while adding meaningful scale to our low-decline production base, free cash flow and proven inventory of highly economic re-investment opportunity.”

After the transaction closes, which is expected by July 1 this year, Crescent plans to operate two rigs in the Uinta Basin for the remainder of the year.

A University of Utah study last year found that as much as 8% of the Uinta Basin’s natural gas production escapes into the atmosphere.