BKV Corp. has successfully completed the acquisition of upstream, midstream assets, and carbon capture projects in the Barnett Shale. This deal has added over 65 MMcfe/d to the company’s production and approximately 117,000 acres of land to BKV's Texas portfolio.
Deal Details
The transaction closed on September 15 after customary closing conditions were met. Financial details of the deal have not been disclosed. BKV financed the purchase using available liquidity and borrowings from its revolving credit facility.
Acquired Assets
The acquired assets include approximately 0.35 trillion cubic feet equivalent (Tcfe) of developed producing reserves and nearly 1,000 operational wells, primarily located in Montgomery County. According to BKV, over 50 percent of the acquired production is liquids.
Chris Kalnin, CEO of BKV, stated, "These assets align well with our operations, and this acquisition enhances our disciplined approach to strengthening our position in Barnett, seamlessly integrating low-decline production and reserves with our existing operations and infrastructure."
Midstream Infrastructure and Carbon Capture Projects
The deal also includes operational midstream infrastructure, which consists of a gas plant with a capacity of 180 MMcf/d and approximately 340 miles of gas gathering lines. Additionally, the assets include nearly 225 miles of water gathering infrastructure and two saltwater disposal wells.
BKV has also acquired a carbon capture and storage (CCS) project that has captured over 100,000 metric tons of CO₂ in the past 12 months. This project includes three compressors, a gas plant, a CO₂ pipeline, and an injection well.
BKV has stated that the additional production and infrastructure will scale its operations in Barnett and provide natural gas volumes to meet demand in the Dallas-Fort Worth area and along the Gulf Coast.
