Japex Buys US Tight Oil Assets for $320 Million

Japex, a Japanese oil and gas explorer, has agreed to acquire four US-based companies holding tight oil and gas assets in Colorado and Wyoming for approximately $320 million.

The acquisition is expected to close in the October-December quarter and follows Japex's purchase of adjacent Verdad Resources assets in February. The Fundare companies produced an average of 9,500 barrels of oil equivalent per day (boed) in January-March.

Japex expects the acquisition to lower costs through operational synergies and improve development efficiency. The company has factored an operating profit contribution of more than $6.3 million from the acquisition into its earnings forecast for the year ending March 2027, with the contribution expected to rise to about $15 billion yen in the following year.

Japex's executive officer, Yutaka Nishimura, sees scope to expand around the assets acquired and may consider further acquisitions of US tight oil and gas assets, as well as assets in other countries. Japex has secured two liquefied natural gas cargoes to replace Middle Eastern supplies and plans to procure another one, potentially seeking an additional cargo.