A Houston oil and gas company is adding 114,000 acres in South Texas’ Eagle Ford Shale to its operations in a $190 million cash and stock purchase.
Magnolia Oil & Gas Corp. acquired the acreage from Houston-based Harvest Oil & Gas for $135 million in cash and 4.2 million Class A Magnolia Oil & Gas Corp. shares at the Aug. 20, 2018 closing price, valued at approximately $56 million.
The 114,000 acres is located in the Gidding field, a part of the Austin Chalk. The purchase included an unknown amount of acreage in Karnes County, though Magnolia Oil & Gas Corp. said it added 15 net locations to its Karnes County acreage, which sits in the heart of the Eagle Ford Shale.
Magnolia Oil & Gas Corp. was formed by former Occidental Petroleum Corp. CEO Steve Chazen in a $2.7 billion deal led by Chazen’s investment firm TPG Pace Energy Holdings Corp. The deal bought EnerVest’s 360,000 net acres in the Eagle Ford Shale and Austin Chalk.