Matador Resources Co. (MTDR) announced June 8 it completed its joint ventures in the Delaware Basin with certain affiliates of HEYCO Energy Group Inc., the former parent company of Harvey E. Yates Co. (HEYCO).

HEYCO merged with a Matador subsidiary in February. The HEYCO affiliates contributed certain interests primarily in the same properties held by HEYCO, resulting in Dallas-based Matador acquiring additional working interests in properties acquired by it in the HEYCO merger.

Pursuant to the terms of the transaction, the HEYCO affiliates sold 1,899.6 net acres to two newly-formed entities in exchange for a 50% interest in each entity.

Matador has agreed to pay $14.2 million in exchange for the other 50% interest in both entities. Matador’s contribution will be used to fund future capital expenditures associated with the interests being acquired as well as to fund other nonoperated opportunities.

With the addition of these interests, the total acreage acquired in New Mexico's Lea and Eddy counties in the HEYCO merger and from the HEYCO affiliates is roughly 59,100 gross (19,100 net) acres. In addition, Matador announced that it recently acquired an additional 2,610 gross (2,210 net) acres in Lea and Eddy counties in unrelated transactions.

Following the acquisitions, the company said its acreage position in the Permian Basin in southeast New Mexico and West Texas increased to about 155,500 gross (88,535 net) acres as of June 8.

Joseph Wm. Foran, chairman and CEO of Matador, said in the release, “We are pleased to have successfully closed these joint ventures with the HEYCO affiliates. The properties they are contributing are interests in primarily the same acreage formerly owned by HEYCO, increasing Matador’s working interests in many of the high-quality assets held by HEYCO in Lea and Eddy counties, New Mexico.”