Thursday, January 06, 2022
FireBird Energy LLC has announced that it has completed an acquisition of operated assets located in the Midland Basin from Chevron U.S.A. Inc. and Chevron Midcontinent L.P.
The value of the deal was not disclosed by FireBird Energy. The transaction closed on December 30, 2021, with an effective date of December 1, 2021, FireBird Energy highlighted.
The acquired asset base is oil-weighted with a low operating cost, according to the company. Following the deal, FireBird Energy has more than 72,000 gross acres and around 11,500 barrels of oil equivalent of daily production, the company highlighted.
“This transaction will be our second major acquisition as we continue to advance our consolidation strategy and enhance our Western Midland Basin footprint with additional scale,” Travis F. Thompson, the chief executive officer of FireBird Energy, said in a company statement.
“The acquisition of these high-margin, oil-weighted assets is a complementary addition to our acreage footprint, production, and cash flow base. The acquisition includes approximately 21,000 net acres – 99 percent operated – in Ector, Midland, Crane, and Upton Counties,” Thompson added in the statement.
“We expect to benefit from additional operating synergies when production operations are combined with our base asset,” Thompson went on to say.
FireBird Energy is a Fort Worth, Texas, based upstream oil and gas company focused on the acquisition and development of assets in the Midland Basin. The company, which was founded in 2019, currently operates more than 450 vertical and horizontal wells in the basin, according to its website.
The Midland Basin is included in the Permian Basin, which is about 250 miles wide and 300 miles long, spanning parts of west Texas and southeastern New Mexico, Chevron highlights on its website. Chevron is one of the largest producers of oil and natural gas in the Permian, with its holdings totaling approximately 2.2 million net acres, the company’s site points out.
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