The acquisition of U.S. tight oil and gas resources by Japan Petroleum Exploration Co., Ltd. (JAPEX) through its purchase of all equity interests in Verdad Resources Intermediate Holdings LLC has been approved. This will help it expand its upstream business in North America.
The transaction will take place through Peoria Resources Acquisition Company, LLC, an offshore subsidiary which falls under the control of Peoria Resources, LLC. This transaction is set to take place at the end of February 2026.
The acquired properties lie mainly in the Denver Julesburg Basin in the northeastern part of Colorado, and the other properties lie in southeastern Wyoming. According to JAPEX, the properties will be operated in-house and should significantly improve their production and reserve position, with their net production expected to doubly and their proved reserves to tresuple.
After the completion of the acquisition, it is expected that the principal activity will be managed by Peoria Resources as the leader in production and development. This will create an operator-led business in the tight oil and gas market in the United States. The company, according to JAPEX, will employ about 50 people.
JAPEX plans to begin the continuous development of the resource in 2026 and carry it on through the early 2030s. Management of its U.S. operation will be provided by experienced individuals from the industry, having formerly worked at BP as well as other E&P companies in North America.
The deal fits into JAPEX's plan to extend the reach of its upstream business in North America, and the firm also identified potential for the assets to drive future growth, including the development of gas resources and the integration of LNG schemes. It appears that JAPEX now hopes to apply skills developed outside the UK to other regions.
JAPEX said that this transaction will enhance its earnings base and enable it to pursue prudent growth in existing unconventional basins in America.