Radiant Oil & Gas Inc., an independent oil and gas exploration and production company in Houston, said it has acquired the Garnet project, a 1,000-acre field in St. Mary Parish.
The field was originally discovered and developed by Sun Oil Co.
Radiant said it 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 about 500 wells. Since 1965, it is estimated that those wells have produced over 59 million barrels of oil and 2.8 trillion cubic feet of gas. Radiant has already identified 21 areas where it can re-work abandoned wells or drill new wells.
“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.
“Because the field has been extensively studied, and we have experienced crews in the region, we are confident that we can quickly get this project commercially producing and generating cash flows.”
Based on management estimates, the project adds over $45 million to the company’s PV-10 reserves. A third-party analysis of the project is currently underway to confirm management’s initial analysis.