Civitas gains foothold in Colorado shale
Emerging US oil and gas company Civitas Resources said June 7 it was building its footprint in Colorado with the $1.3bn acquisition of Crestone Peak Resources.
Civitas said the acquisition will give it about a half million acres in the Denver-Julesburg basin and yield production of about 160,000 barrels of oil equivalent (boe)/day, with the majority of that as natural gas.
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“Civitas is also proud that, inclusive of the Crestone assets, it will be Colorado’s first carbon neutral oil and gas producer (Scope 1 and Scope 2) upon closing, advancing its net-zero goals,” the company explained.
Last year, Colorado was the seventh-largest gas producing state in the country, according to the US Energy Information Administration. And the Denver-Julesburg basin is one of the richest shale oil and gas regions in Colorado.
Civitas will emerge officially once a recently-announced $2.6bn merger between Bonanza Creek Energy and Extraction Oil & Gas closes later this year. Eric Greager, the CEO of Bonanza Creek, will take the helm at Civitas once the merger is formalised.
"We are actively building one of the most durable and profitable producers in the DJ Basin," he said. "Our combination with Crestone is just one early marker of what we hope to achieve as Civitas, as we establish ourselves as the preferred consolidation partner in the DJ Basin and work toward becoming one of the top energy producers in the nation."