New Gulf Resources (NGR) has obtained $500 million in financing to acquire assets in east Texas. The upstream energy firm based in Tulsa, Oklahoma, said it now operates more than 90,000 acres of shale plays in east Texas. NGR also acquired 83,000 net acres in Texas' Leon, Grimes, Madison, Brazos and Walker counties from Halcon Resources. The acquisition will allow NGR to produce an additional 3,600 barrels of oil per day equivalent.
"Today we have married a first class hydrocarbon rich asset with a team that has successfully exploited and developed two prior projects in the basin," said Ralph Hill, chairman and CEO of NGR. "We expect to increase production substantially as we deploy a multiple rig program in these proven areas."
As part of the company's strategy, NGR plans to increase recoverable reserves in basins that are low risk. In June, NGR will start drilling in various zones in the east Texas basin, including Woodbine, Eagle Ford, Buda, Glen Rose and others.
NGR is partnering with Halliburton to obtain well products and services for projects in Texas.