2011-01-11-2011-01-07-2011-01-07

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
$15.3MM
Description

Bought 3-year leases covering 17,000 net acres in Permian Bone Spring and Avalon shale trends.

Energen Resources Corp., a subsidiary of Energen Corp., Birmingham, (NYSE: EGN) has acquired three-year leases in the Bone Spring and Avalon shale trends in the Permian Basin from various Texas state agencies and other entities for $15.3 million.

The assets cover approximately 17,000 net acres in Reeves, Ward, Loving, and Winkler counties. Based on 320-acre spacing, the company estimates the properties offer potential for approximately 50 Bone Spring locations and 50 Avalon shale locations.

Energen Resources estimates that drilling and completion costs are approximately $7.5 million per well. Energen has drilled eight Bone Spring wells in Ward and Winkler counties and participated in another 23 wells; the company announced plans in December to drill another 13 Bone Spring net wells in 2011 and at least one Avalon shale well. Potential drilling plans on the new leases in 2011 have not been determined.