Radiant Oil & Gas Inc. has acquired the Garnet project, a 1,000 acre field in St. Mary Parish, La., that was originally discovered and developed by Sun Oil Co. Based on management estimates, the project adds over $45 million to the company’s PV-10 reserves. A third-party analysis will confirm management’s initial analysis.
“This acquisition is consistent with our strategy of purchasing and redeveloping long lived, historically producing assets in the Gulf Coast,” said Radiant CEO John Jurasin. “As interest in unconventional shale plays has surged, we continue to see a number of overlooked opportunities to acquire quality, mature projects in conventional areas at compelling valuations.”
Radiant outbid four other parties in a competitive lease sale to acquire the project. Garnet is one of a series of fields from the original discovery, which contains approximately 500 wells. Radiant has identified 21 areas where it can re-work abandoned wells or drill new wells.