Japex Acquires US Tight Oil Assets for $320 Million

Japan Petroleum Exploration (Japex) is set to acquire four US-based companies holding tight oil and gas assets in Colorado and Wyoming for approximately $320 million. The acquisition, expected to close between October and December, marks Japex's second purchase of adjacent resources in the region after acquiring Verdad Resources assets in February.

The Fundare companies being acquired produced an average of 9,500 barrels of oil equivalent per day (boed) in January-March. Japex estimates that the acquisition will contribute over $6.3 million to its operating profits this fiscal year and rise to around $15 billion yen by the following year.

Japex has also secured two liquefied natural gas cargoes to replace Middle Eastern supplies, with plans to procure another in the second half of the current financial year. The company may consider additional cargo procurement, according to Yutaka Nishimura, an executive officer at Japex.