West Virginia's Mountain V Closes $4MM Acquisition of AXP Energy
by Rocky Teodoro | Rigzone Staff | Tuesday, April 09, 2024 | 10:00 AM EST
Mountain V Oil and Gas has completed the acquisition of AXP Energy, an Australian oil and gas company with assets in Tennessee, Kentucky, and Virginia for $4 million.
The purchase “solidifies Mountain V's position as a reliable and sustainable producer of oil and gas that maintains a diversified commodity mix,” the West Virginia-based company said in a news release.
Mountain V has a 30-year history in the gas and well-drilling business. In 2022, the company began drilling unconventional horizontal wells to advance its mission of discovering new reserves and efficiently extracting and operating the resources, according to the release.
In the fourth quarter of 2023, Mountain V targeted branching out into oil with the AXP Energy acquisition. With oil-heavy assets in demand due to the lower prompt pricing of natural gas, the outright purchase of AXP Energy's holdings in the Midwest and the Appalachian region "fits seamlessly into the mission and vision for growth at Mountain V,” the company said.
AXP Energy is an oil and gas production and development company founded in 2006. It is headquartered in Lexington, Kentucky, with an office located in Sydney, Australia. The company has primary operations in Kentucky, Illinois, Indiana and Colorado. The company focuses on low cost, conventional oil and gas wells in the USA.
"We are excited to enter our 30th year as a proud family business with this acquisition, which will allow for geographical and commodity diversification, growth in reserves, and development of more locations," Mike Shaver, CEO and President of Mountain V Oil & Gas, said. "The acquisition of AXP Energy positions Mountain V for sizable growth, and continued leadership in reliable and sustainable oil and gas extraction in the Appalachian basin of North America”.
Mountain V is a privately owned independent energy company with assets in the Appalachian Basin and an acreage position of over 300,000 leasehold acres. It has expanded its footprint into seven states and currently operates over 3,100 conventional and unconventional wells. Its vision includes innovation in horizontal drilling by leveraging a vast acreage position and improving reserves in the mostly untapped, but proven resources in the Marcellus and Upper Devonian Shales in West Virginia and Pennsylvania and the various sandstone formations in Kentucky.
With a longstanding history in gas combined with increased oil assets, the company said it targets long-term value for stakeholders and maximizes investor returns through a strategy of acquiring, optimizing, and managing existing natural gas and oil assets.