Jul. 05, 2018
Sumitomo Corporation invests producing and developing tight oil asset in Texas in U.S.A.
Sumitomo Corporation (Sumitomo, Head Office: Chuo-ku, Tokyo; Representative Director, President and Chief Executive Officer: Masayuki Hyodo) is pleased to announce that our subsidiary company, Summit Discovery Resources II LLC (SDRII, Head Office: Texas, U.S.A., Representative; Hajime Mori) has reached an agreement with IOG Gonzales 1835 LLC, an entity managed by IOG Capital, LP (IOG, Head Office: Texas, U.S.A.), Covington Equity Investments LLC (Covington, Head Office: Texas, U.S.A.) and 1836 Resources, LLC (1836, Head Office: Texas, U.S.A.) to acquire certain producing Eagle Ford properties in South Texas (Asset). As a result of the transaction, SDRII has become the 100% working interest owner and operator of the Asset.
The Asset is located in Karnes County, Texas, known by many as the core of the Eagle Ford where there is an abundance of production history. This strategic acquisition will allow SDRII to build its operating capacity and experience for future growth through operating existing producing wells and future well development within the Asset.
Sumitomo and SDRII will contribute to human life and development of local industry through stable supply of oil and gas from the Asset.
|<Outline of the Asset>|
|Operator||:||SDRII (After the acquisition)|
|Location||:||Karnes County in Texas in U.S.A.|
|The Asset||:||Leases, producing wells and related facilities owned by 1836, IOG and Covington|
|Estimated Peak Production||:||3,000 barrel of oil equivalent/day|
|Lease||:||624 acre (2.5km2)|
■Location of the Asset
(Source : U.S. Energy Information Administration. Some parts are prepared by Sumitomo Corporation.）
■About IOG Capital, LP
Founded in 2014, IOG Capital, LP is a Dallas, Texas-based energy investment firm that manages oil and gas assets. The Firm seeks to invest in diversified upstream oil and gas development projects located onshore in the United States through joint development, and joint operating agreements.
As of June 2018, IOG has deployed over $800 million of capital in more than 450 oil and gas wells diversified across four states and 22 counties. More information is available at https://www.iogcapital.com/
■Sumitomo Corporation’s Material Issues
Sumitomo Corporation Group positions “Six Material Issues to Achieve Sustainable Growth with Society” as an important factor in developing business strategies and in the decision-making process for individual businesses. Going forward, we will pursue sustainable growth by resolving these issues through our business activities. This project especially contributes to “the Development of Local Communities and Industries” and “Establishing a Foundation for Comfortable and Enriching Lifestyles”.