Parsley Energy to acquire $607m oil and gas assets in Midland and Delaware Basins
Texas based Parsley Energy has agreed to acquire certain undeveloped acreage, and oil and gas producing assets for $607m near its existing operating areas in the Midland and Southern Delaware Basins.
In the Midland Basin, the company will acquire nearly 25,200 gross / 17,800 net leasehold acres in Upton, Glasscock, Reagan and Midland Counties in Texas for around $402m. The estimated daily net production from the Midland Basin acquisitions is 1,200 Boe.
Parsley Energy chairman and CEO Bryan Sheffield said: "We continue to focus on digestible bolt-on acreage that can be rapidly assimilated into our development program.
"All of the acquisition properties meet our high standards for acreage quality, return profile, and upside potential.”
In the Southern Delaware Basin, Parsley will spend around $205m to acquire nearly 6,600 gross / 5,200 net acres in the Texas counties of Reeves, Ward, and Pecos Counties.
Separately, Parsley Energy has also purchased select mineral stakes in the Southern Delaware Basin for $43m. The company has acquired a 17% stake in nearly 3,900 net acres in Reeves and Pecos Counties in this deal.
Sheffield concluded: “Together, these properties will increase our net acreage by more than 15%, and we believe that our track record of operational excellence, productivity enhancement, and cost leadership makes us the best owner of these assets."
Funding of the three acquisitions is planned by an equity offering which Parsley announced concurrently with the deals.
Besides the transactions, the oil and gas producer also revealed its 2017 capital plans as well as operating guidance. Through these, it is mulling 75% surge in net lateral footage and nearly 60% growth in production compared to last year by leveraging on its increasing asset base.
Image: Map showing Parsley’s new acquisitions. Image courtesy of Parsley Energy, Inc.