In a significant development in the Texas oil and gas sector, Hilcorp Energy Company has successfully acquired multiple facilities from Urban Oil & Gas Group, LLC. This transfer, regulated by the Texas Commission on Environmental Quality (TCEQ), underscores Hilcorp’s ongoing commitment to expanding its operations across the Lone Star State.

Key Highlights of the Transfer

Previous Owner: Urban Oil & Gas Group, LLC.
New Owner: Hilcorp Energy Company.
Project Scope: The transfer includes facilities undergoing “AIR NEW SOURCE REVIEW (NSR) CHANGE OF OWNERSHIP”.
Project Status: All projects have been marked as “COMPLETE,” indicating the seamless transition of ownership.
Permit Type: Facilities are categorized under “PBR” (Presumed Permits by Rule), ensuring regulatory compliance.

Regional Breakdown

Robertson County, TX

Rank: Robertson County ranks #33 in Texas for Barrels of Oil Equivalent (BOE) production as of September 2024.
Historical Data: From January 1993 to September 2024, 1,424 wells have been drilled in the county.
Facilities: Key sites transferred include Floyd Turner Well Sites 1-5 and 1-6.

Leon County, TX

Rank: Leon County ranks #45 in Texas for BOE production as of September 2024.
Historical Data: Over the same time frame, 1,427 wells have been drilled in the county.
Facilities: The McAshan 8 Well Site is among the prominent assets included in the transfer.

Strategic Implications for Hilcorp

This acquisition strengthens Hilcorp’s foothold in key oil and gas-producing regions in Texas. Robertson and Leon counties are pivotal due to their steady production output and historical significance in the state’s energy landscape. By incorporating these facilities, Hilcorp can optimize operational efficiencies and enhance resource utilization.

Environmental and Regulatory Compliance

The smooth completion of these transfers highlights Hilcorp’s adherence to TCEQ’s stringent regulatory framework. The facilities’ classification under “Presumed Permits by Rule” demonstrates a commitment to maintaining environmentally responsible operations while achieving business objectives.

Future Outlook

With this acquisition, Hilcorp is well-positioned to leverage its expertise in managing and optimizing energy assets. The company’s expansion in Texas aligns with its broader strategic goals of increasing production capacity and operational efficiency. Furthermore, the transition underscores the dynamic nature of the oil and gas sector, where resource acquisition and efficient management are key to sustaining long-term growth.

Conclusion

The transfer of TCEQ facilities from Urban Oil & Gas Group to Hilcorp Energy Company marks a noteworthy chapter in Texas’s energy industry. With a focus on compliance, sustainability, and strategic growth, Hilcorp continues to demonstrate its leadership in the oil and gas sector. Stakeholders in Robertson and Leon counties can look forward to enhanced economic contributions and sustained energy production in the region.

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