For about $252 million, in aggregate price, Parsley Energy Inc. (NYSE: PE) entered agreements with “multiple sellers” in separate transactions to acquire acreage and producing properties in Reagan County, Texas, the company said Aug. 25. The acreage and properties are adjacent to the company’s operating areas in the county, Parsley noted.
The company acquired 157 net horizontal drilling locations that span 5,472 net acres in the county. Per location, there is about 6,900 feet of average stimulated lateral, the company said. There are also 140 net vertical drilling locations on 80- and 40-acre areas, and 140 net vertical drilling locations on 20-acre areas, Parsley added.
Estimated net production, at closing, is about 1,800 barrels of oil equivalent per day (boe/d). This consists of about 300 boe/d from two producing wells and about 1,500 boe/d from five recently completed wells, the company said.
The properties are “prospective” for its “target horizons,” which include the Wolfcamp A, B and C Formations, and the Cline and Atoka Formations, the company added.
Parsley holds 98% average working interest and 23% average royalty, the company noted.
“We are thrilled to bolt-on premiere acreage that allows for longer laterals in our primary horizontal development area, where we and others are seeing very promising drilling results,” said CEO Bryan Sheffield.
“With facilities in place, a number of permits already secured, and our existing operations in Reagan County, we expect to realize substantial value from these assets right away,” he added.
The acquisitions are scheduled to close Sept. 30, and will be funded through cash on hand. Parsley expects to have more than $500 million of liquidity after they close, the company noted.
These acquisitions contributed to the addition of more than 16,000 net acres and 456 net horizontal drilling locations since Parsley’s May IPO, the company said.
On one of the transactions, Tudor Pickering Holt & Co. was Parsley’s sole financial adviser, the company noted.
Midland, Texas-based Parsley Energy Inc. acquires and develops oil and natural gas in the West Texas Permian Basin.
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