JAPEX Doubles Down on U.S. Shale With $320 Million Colorado-Wyoming Deal

JAPEX Doubles Down on U.S. Shale With $320 Million Colorado-Wyoming Deal

Mon, August 10, 2026 at 6:04 PM GMT+3 2 min read

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Japan Petroleum Exploration Co. (JAPEX) is expanding its U.S. oil and gas footprint with a $320 million acquisition of tight oil and gas producer Fundare, strengthening its position in Colorado and Wyoming as it pursues an aggressive international growth strategy.

JAPEX said it would acquire all four Fundare operating entities through its U.S.-based subsidiary structure, adding assets that produced approximately 9,500 barrels of oil equivalent per day in the first quarter of 2026.

A major portion of the acquired acreage sits close to JAPEX's existing Verdad assets, which the Japanese producer acquired earlier this year. The proximity should allow JAPEX to pursue operational synergies, lower development costs and benefit from greater economies of scale.

The deal is closely aligned with JAPEX's newly launched 2026-2035 management plan, which positions the United States as a key hub for early earnings growth and for building the company's operational expertise in tight oil and gas. The company has set a target of increasing production to 100,000 boe/d by fiscal 2031 and 180,000 boe/d by 2035, with overseas E&P at the center of the strategy.

JAPEX's U.S. expansion has accelerated rapidly. Reuters reported in April that the company plans to direct more than half of its overseas E&P investment toward the United States, following its $1.3 billion acquisition of Verdad.

Fundare generated net income of $20.6 million in 2025, according to JAPEX's transaction disclosure. The acquisition is expected to contribute at least 1 billion yen in operating profit during the current fiscal year and approximately 15 billion yen annually from fiscal 2028.

The transaction is scheduled to close in JAPEX's fiscal third quarter ending March 2027, with funding coming from Peoria's cash flow and reserve-based lending.

The latest deal signals that JAPEX sees U.S. shale not just as a source of production growth, but as a cornerstone of its ambition to build a larger, more globally competitive oil and gas business.

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