Houston-based independent Radiant Oil & Gas won a tender Wednesday for a 1,000 acre legacy field in St. Mary Parish, Louisiana.
The area, known as the Garnet project, adds $45 million to the company’s PV-10 reserves.
PV-10 is the value of current oil reserves once they are extracted from the ground net of expenses and minus 10 percent per year.
Since 1965, 500 wells at Garnet have produced a total of 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.
A third party analysis of the project is currently underway to confirm Radiant’s initial analysis.
“As interest in unconventional shale plays has surged, we continue to see a number of overlooked opportunities to acquire quality, mature projects in conventional areas at compelling valuations,” Radiant CEO John Jurasin said.
Radiant focuses on E&P in onshore areas and shallow state waters of the U.S. Gulf Coast.
Radiant owns and operates about 6,000 net acres across seven projects: Natchez, Taylor Point, Ensminger, Coral, Onyx and Garnet.