WPX Energy has agreed to acquire oil and gas assets in the Delaware Basin from Panther Energy Company II and Carrier Energy Partners for $775m to a bid to boost its position in the oil-rich Permian region.
The assets considered for acquisition include about 6,500 barrels of oil equivalent per day (boe/d), of which 55% is oil, from 23 producing wells and two drilled but uncompleted horizontal laterals.
Additional assets include 18,100 net acres in Reeves, Loving, Ward and Winkler counties in Texas and 920 gross undeveloped locations in the geologic sweet spot of the Delaware Basin.
WPX Energy expects the acquisition to increase its Permian operations to more than 120,000 net acres while boosting its drilling inventory of top-tier Delaware locations.
The firm entered the Permian Basin with the purchase of RKI Exploration and Production in August 2015 and since then it has added approximately 32,000 net acres in the core of the Delaware Basin.
With the acquisition, WPX is expecting 30% oil growth and 25% overall production growth in 2017.
Source: Energy Business Review.