Japan Petroleum Exploration Co Ltd (JAPEX) said Thursday it has entered into a deal to acquire Verdad Resources Intermediate Holdings LLC (VRIH), which owns tight oil and gas assets in the DJ Basin in Colorado and Wyoming, from Verdad Resources Feeder LLC for around $1.3 billion.
The acquisition would give JAPEX its first operated stakes in the United States, where it focuses on shale oil. The assets produce about 35,000 barrels of oil equivalent a day (boed) net, consisting of 70 percent light crude oil and natural gas liquids (NGLs), according to JAPEX.
"Through future additional development, production [from the VRIH assets] is expected to increase to approximately 50,000 boed around 2030", JAPEX said in a statement on its website.
Over 1,000 wells have been put onstream across the assets, with a further 1,000 planned, according to slides separately published by JAPEX.
The operated portion of the assets spans approximately 125,000 gross acres. The non-operated assets total about 127,000 gross acres. The assets contain light oil, NGL and natural gas, JAPEX noted. It said it aims to develop the Codell and Niobrara formations.
JAPEX expects to complete the acquisition, which would be funded using borrowings and existing cash, by February 2026.
VRIH, established 2017, held net assets worth $966.23 million as of the end of 2024. It logged $825.03 million in revenue and $341.26 million in operating income for the one-year period, JAPEX noted.
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JAPEX expects the acquisition to contribute about JPY 20 billion ($128.7 million) to its operating profit for the fiscal year ending March 2027.
"As Peoria has fiscal year ending in December, there will be no impact on JAPEX's consolidated results for the fiscal year ending March 2026", JAPEX said, referring to its subsidiary involved in the acquisition.
"In addition to employees already hired at Peoria by the end of February 2026, recruitment efforts will also target employees primarily engaged in operations under the seller, with plans to secure approximately 50 personnel required for the development and operation of the assets", JAPEX said.
On March 26, JAPEX announced it had formed Peoria to acquire operating stakes in the U.S., after initially focusing on non-operated ones.
JAPEX said in Thursday's statement, "To further expand E&P [exploration and production] business in the U.S. and pursue sustainable profitability, JAPEX has established Peoria to acquire and manage operator assets that enable it to advance projects proactively and strategically".
Currently JAPEX's U.S. presence involves minority stakes in the Eagle Ford formation in southern Texas and the Woodford formation in Oklahoma, held through JAPEX (U.S.) Corp, according to information on its website.
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