The Colorado energy company Civitas Resources is to buy Crestone Park Resources, an energy producer in the Denver-Julesburg (DJ) Basin, for $4.5bn.
Civitas, which is the result of the merger between Bonanza Creek Energy and Extraction Oil & Gas, says it “will be optimally positioned to increase efficiencies through combining operations across more than half a million net acres and an estimated production base of approximately 160,000 barrels of oil equivalent per day”.
The agreement to acquire Crestone represents the most recent initiative in Civitas’ execution of the new exploration and production business model that has been actively embraced by Bonanza Creek and Extraction.
With the addition of Crestone, Civitas will operate across more than half a million net acres, with leasehold positions in all key areas of the DJ Basin. The company will also have an estimated production base of approximately 160,000 barrels of oil equivalent per day.
Eric Greager, CEO of Bonanza Creek, said: “We are actively building one of the most durable and profitable producers in the DJ Basin. Our combination with Crestone is just one early marker of what we hope to achieve as Civitas, as we establish ourselves as the preferred consolidation partner in the DJ Basin and work toward becoming one of the top energy producers in the nation.”
Civitas said it was “proud” that, inclusive of the Crestone assets, it will be Colorado’s first carbon neutral oil and gas producer (scope 1 and scope 2) upon closing, advancing its net-zero goals.
Crestone’s primary shareholder is Canada Pension Plan Investment Board. CPP Investments will become Civitas’ largest shareholder and will designate one member to the Civitas board upon closing.
For more information visit: www.bonanzacrk.com