Warwick Investment Group has acquired operated oil and gas assets in Texas’ Eagle Ford Shale from Rosewood Resources, a Dallas-based privately held oil and gas company.
The combined purchase price and anticipated development capital represents an incremental ~$450MM commitment to the Eagle Ford for Warwick, the company. The acquisition is poised to deliver both short and long-term value due to the acreage’s balanced mix of current production and near-term future development, the company said.
Current oil production and near-term development will provide Warwick exposure to oil prices and the recovery in oil demand observed in the persistent decline in U.S. oil inventories. As the world continues to diversify its fossil fuel consumption to become more sustainable, Warwick’s future development of the Rosewood asset will be focused on natural gas and natural gas liquids to provide fuel for power consumption and feedstock for chemicals and plastics.
The Warwick team says this acquisition builds on its existing deep technical and commercial experience in the Eagle Ford. Warwick Athena, a company managed by Warwick, immediately offsets the Rosewood asset.