Peoria Resources Acquires Verdad's DJ Basin Assets, Signaling JAPEX's Deepened U.S. Commitment

HOUSTON, TX – December 19, 2025 – In a significant move solidifying its presence in the U.S. onshore energy market, Houston-based Peoria Resources, LLC has entered into an agreement to acquire the oil and gas business of Verdad Resources Intermediate Holdings, LLC. The all-equity transaction, valued at an estimated $1.3 billion, transfers control of a substantial portfolio in Colorado's prolific Denver-Julesburg (DJ) Basin to the JAPEX (U.S.) Corp. subsidiary.

The deal provides Peoria with 101,000 net acres of operated assets in one of North America's premier hydrocarbon regions, a move that aligns with a carefully orchestrated strategy by Peoria's parent company, Japan Petroleum Exploration Co. Ltd. (JAPEX), to deepen its investment in American energy production.

"We are excited to enter into this agreement to acquire an asset within the DJ Basin which provides size, scale, substantial operated inventory, best-in-class margins and access to premium markets," said Greg West, Peoria's Chief Executive Officer. "Acquisition of this top tier asset which includes 101,000 net acres and stacked pay development potential aligns with our strategy to build a healthy, scalable operated oil and gas business."

A Strategic Pivot for JAPEX

This acquisition is far more than a simple asset purchase; it represents a cornerstone of a major strategic pivot by JAPEX. The Japanese energy giant recently revised its long-term vision, shifting focus away from an aggressive expansion into renewable energy and back toward its core competency in oil and gas exploration and production, which it sees as offering higher returns through 2030. A key pillar of this new strategy was the stated goal of acquiring a U.S. tight oil operator by 2026, a target this deal decisively achieves.

JAPEX's leadership has identified the United States as a favorable investment climate, citing its abundant resources, established infrastructure, and what it anticipates will be a stable energy policy environment. The acquisition through Peoria marks a significant evolution in JAPEX's international investment model. The company is moving away from its traditional role as a non-operating partner in joint ventures and toward direct operational control. This hands-on approach will allow JAPEX to implement its own technical standards and have full authority over development timing, completion techniques, and production optimization.

"We are pleased to acquire a cornerstone asset with which to grow our onshore U.S. operated business through Peoria," said Tetsuo Fukuhara, JUS President. "The top tier assets being acquired, combined with the Peoria team's extensive experience is a great start to our operated business in the U.S."

This sentiment was echoed by JUS Chief Operating Officer Josh Karim, who framed the deal as the beginning of a larger journey. "This acquisition continues to show that our commitment to the U.S. market remains strong. The Verdad acquisition is just the beginning of our journey with the Peoria team to create a long-term sustainable business in the U.S. that provides strong returns for the foreseeable future."

Building an Operated Empire in the DJ Basin

At the heart of this strategy is Peoria Resources, an exploration and production company led by a management team with a proven track record. Co-founders Greg West (CEO) and David Kita (CTO) previously held leadership roles at Treadstone Energy Partners, a private E&P company known for its successful partnership with Kayne Anderson Energy Funds. Their experience at Treadstone, which culminated in a successful asset divestiture in 2021, and prior tenures at energy majors like BP, provides the operational and technical credibility JAPEX sought for its U.S. expansion.

The assets themselves are located in the heart of the DJ Basin's Wattenberg Field, a region known for its rich, multi-layered geology. Verdad Resources has been a pure-play operator focused on developing the Niobrara and Codell formations, which are prized for their economic viability, often requiring less artificial lift and producing a lower ratio of water to oil. For JAPEX, the acquisition is expected to approximately double its net production and triple its proved reserves in the United States, establishing a formidable operational base.

"Peoria and JUS partnered earlier this year to pursue the acquisition of operated U.S. onshore oil and gas assets," noted David Kita, Peoria's Chief Technical Officer. "This acquisition represents a key milestone in that partnership and establishes a strong foundation for continued investment in the U.S. onshore oil and gas sector."

Market Dynamics and Regulatory Headwinds

The transaction occurs amidst a dynamic M&A landscape in the energy sector. Following a surge in deal-making in 2023 and 2024, companies are increasingly looking beyond the hyper-competitive Permian Basin for value. Basins like the DJ, Eagle Ford, and Williston are attracting renewed interest from investors seeking quality assets at more reasonable valuations. The all-equity structure of the Peoria-Verdad deal suggests strong confidence from JAPEX and Peoria in the long-term value of the assets and reflects a financially robust position that avoids taking on new debt in a fluctuating interest rate environment.

However, operating in Colorado comes with a unique set of challenges. The state has enacted some of the most stringent oil and gas regulations in the nation. Operators in the DJ Basin must navigate rules that include a 2,000-foot setback from homes and schools, comprehensive assessments of cumulative environmental and community impacts, and aggressive measures to cut methane emissions. For instance, a 2021 rule mandated the use of non-emitting pneumatic controllers, directly impacting operations in the densely drilled basin. These regulatory hurdles increase compliance costs and can complicate development planning, factors that Peoria's experienced team will need to manage carefully.

Despite these headwinds, the allure of the DJ Basin's geology and established infrastructure remains powerful. With over 50,000 producing wells and a history of production spanning a century, the basin's potential continues to draw significant investment.

The Path Forward: Integration and Growth

With the agreement signed, the focus now shifts to integration and execution. JAPEX plans to establish a 50-person operational team for the new assets, blending existing Peoria employees with experienced staff transitioning from other North American E&P companies. This hybrid approach aims to combine local operational expertise with JAPEX's global technical methodologies.

The acquisition provides Peoria with the size and scale necessary to execute its long-term vision. The extensive inventory of drilling locations across the 101,000-acre position offers a clear runway for growth and development. By taking the operational reins, Peoria can dictate the pace of development, optimize production, and manage its cost structure directly, creating what its leadership hopes will be a sustainable and profitable business for decades to come. This deal is not just an entry into a new basin, but the foundation of a new chapter for both Peoria Resources and its ambitious parent company in the American energy landscape.