Another piece of the Permian puzzle has slipped into place for Diamondback Energy Inc. (Nasdaq: FANG), with the company announcing Feb. 20 that it has an agreement to buy another 1,858 leasehold acres.

Diamondback, based in Midland, Texas, picked up an additional 28.8% working interest for about $114.3 million, subject to adjustments.

As a result of the additional purchase, Diamondback now has definitive agreements to acquire an aggregate of 4,683 net acres, representing a 72.6% working interest, for a total purchase price of $288.3 million.

On Feb. 18, FANG announced that it had agreed to buy 2,825 net acres in Martin County, Texas, for about $174 million. The initial deal gave FANG a 43.8% working interest and 75% net revenue interest in Martin County. The company said then that it was working to buyout the existing working interest holders by making offers for the same proportionate price.

Should the remaining parties agree to sell their working interests to FANG then its working interest in the properties would rise to 100%. The aggregate purchase price could be as much as $397 million.

During the first two weeks of February, based on information reported by the operator, net production attributable to the acreage the company now has under contract was approximately 2,155 barrels of oil equivalent per day (BOE/d), of which 77% is oil.

Net proved reserves as of Dec. 31, based on Diamondback's internal estimates, were approximately 6,937 MBOE, although this reserve estimate remains subject to revision following the closing of the transactions.

Diamondback’s management thinks the acreage is prospective for horizontal drilling in the Wolfcamp B, Lower Spraberry, Middle Spraberry, Wolfcamp A, Cline and Clearfork horizons. The company has identified 42 potential horizontal drilling locations in each of the Wolfcamp B and Lower Spraberry horizons based on 160 acre spacing per well (or six across a section). Another 112 potential horizontal drilling locations are possible in the Middle Spraberry, Wolfcamp A, Cline and Clearfork intervals based on 120 acre spacing per well.

“When you compare this acquisition against our current valuation metrics, this represents another accretive acquisition for our stockholders," Travis Stice, Diamondback's CEO, said Feb. 18.

The deal is a potential money maker with Diamondback’s current implied market valuation of $79.70 per proved BOE, $307,262 per flowing BOE of production and $48,444 per acre, said Gabriele Sorbara, analyst for Topeka Capital Markets.

Diamondback said Feb. 20 it now anticipates operating the acquired acreage following the closing of the acquisitions, which are expected by the end of February.

Diamondback intends to finance the acquisitions, subject to market conditions and other factors, with a combination of borrowings under its revolving credit facility and the issuance of equity securities.