Houston-based Ursa Resources acquires natural gas and pipeline assets for $325 million

by Stibbs & Co., P.C. on November 12, 2012

The purchase of new assets is often a key strategy in the efforts of Houston oil and gas exploration firms looking to increase their market share. The Houston Business Journal reported that Ursa Resources, a local firm, has reached an agreement to buy assets from Colorado-based Antero Resources for $325 million.

The assets include natural gas and pipeline resources. Further explanation of this particular acquisition will be revealed this week in Colorado at a county commissioners' meeting. Don Simpson, a landman from Ursa Resources, will discuss the effects of this sale, which includes more aggressive drilling processes than the former company utilized.

"We do plan to develop probably more aggressively than Antero," Simpson told the Glenwood Springs Post Independent. "We can drill at today's gas prices."

The Piceance Basin region includes many opportunities for drilling throughout western Colorado, eastern Utah and southern Wyoming, but activity has decreased in recent years due to the decline in natural gas prices. Along with this acquisition, Ursa Resources will also be building an office in Denver, said Simpson in a statement.

More local companies could make additional investments in oil and gas assets if drilling conditions improve, and business lawyers can offer the legal support needed to leverage new opportunities into beneficial contractual agreements. Research performed by Baker Hughes Inc reported a rise in the domestic oil and gas rig count, reversing recent declines. The total number of rigs increased by six to 1,806 during the week that ended on November 9, up from 1,800 the week before. 

The majority of firms were exploring for oil while the rest were geared toward gas exploration. Texas, North Dakota and Alaska made the highest gains in rig count while New Mexico and Arkansas lost some units.

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