Rosetta Resources Inc. (Nasdaq: ROSE) plans to buy Permian Basin assets from Comstock Resources Inc. (NYSE: CRK) for US $768 million.
The acquisition covers 53,306 net acres (87,373 gross) located in Reeves and Gaines counties in West Texas. The Reeves County assets located in the Delaware Basin include 40,182 net acres and 74 producing (52 operated) primarily Wolfbone wells.
Total current net production is 3,300 barrels of oil equivalent per day of which more than 73% is oil. Rosetta projects significant growth potential for the area based on an estimated 1,300 gross, or nearly 800 net well locations targeting the Wolfbone on 40-acre vertical well spacing. The company estimates total net risked resources potential of 145 million barrels of oil equivalent, of which 67% is oil and 82% liquids.
Potential upside also exists from further vertical well down-spacing and potential horizontal drilling, including the Wolfcamp formation, none of which is currently included in the resource estimate. Rosetta would be the operator of the majority of the Reeves County assets.
The Gaines County assets located in the Midland Basin cover 13,124 net acres and are currently un-delineated. Potential exists for multiple exploratory opportunities in the area. The company's resource estimate for the Permian Basin acquisition excludes potential future resources from the Gaines County acreage.
The transaction is effective as of Jan. 1, and is expected to close on or about May 15. Rosetta has secured an additional US $700 million of committed financing for the transaction with the potential of accessing the capital markets prior to closing.
RBC Richardson Barr was financial advisor to Rosetta on this transaction.
Rosetta Resources Inc. is an independent E&P company engaged in the acquisition and development of onshore energy resources in the US. The company is headquartered in Houston.
Comstock Resources Inc. is an independent energy company engaged in the acquisition, development and E&P of oil and natural gas properties in the US. The company is headquartered in Frisco, Texas.
Recommended Reading
US Drillers Add Oil, Gas Rigs for First Time in Five Weeks
2024-04-19 - The oil and gas rig count, an early indicator of future output, rose by two to 619 in the week to April 19.
Strike Energy Updates 3D Seismic Acquisition in Perth Basin
2024-04-19 - Strike Energy completed its 3D seismic acquisition of Ocean Hill on schedule and under budget, the company said.
Santos’ Pikka Phase 1 in Alaska to Deliver First Oil by 2026
2024-04-18 - Australia's Santos expects first oil to flow from the 80,000 bbl/d Pikka Phase 1 project in Alaska by 2026, diversifying Santos' portfolio and reducing geographic concentration risk.
Iraq to Seek Bids for Oil, Gas Contracts April 27
2024-04-18 - Iraq will auction 30 new oil and gas projects in two licensing rounds distributed across the country.
Vår Energi Hits Oil with Ringhorne North
2024-04-17 - Vår Energi’s North Sea discovery de-risks drilling prospects in the area and could be tied back to Balder area infrastructure.