Petroleum Resources Development Co., Ltd. is set to acquire Verdad Resources Intermediate Holdings LLC to enhance its operational capabilities in the U.S. oil and gas market.

Information on the Target

Petroleum Resources Development Co., Ltd. (PRDC), a prominent entity in the oil and gas sector, has entered into an agreement to acquire Verdad Resources Intermediate Holdings LLC (VRIH), based in Texas, USA. The acquisition aims to expand PRDC's operational capacities in the exploration and development of oil and natural gas resources. VRIH possesses significant assets enabling it to act as an operator, with a current production output of approximately 35,000 barrels of oil equivalent per day (boed), which they plan to elevate to 50,000 boed.

Currently, VRIH is reporting revenues of ¥128.1 billion, an operating income of ¥53 billion, and net assets worth ¥150.1 billion for the fiscal year ending December 2024. The planned acquisition, valued at approximately ¥202 billion (around $1.3 billion), is scheduled for completion by the end of February 2026 through PRDC's subsidiary, Peoria Resources Acquisition Company, LLC.

Industry Overview in the Target’s Specific Country

The oil and gas industry in the United States is one of the largest and most influential sectors within the global energy market. With vast reserves and technological advancements, U.S. oil production has surged, particularly