Parsley Energy announces Midland Basin acquisition
Est. net production of 1,000 barrels of oil equivalent per day during Nov. from 3 horizontal wells in Midland Basin
Parsley Energy map
AUSTIN, Texas – Like many oil and gas companies struggling in a low price environment, Parsley Energy, Inc. is expanding operations in the most prolific American shale play, the Permian Basin.
Parsley Energy, Inc. (NYSE: PE) says it has entered into an agreement to acquire certain undeveloped acreage and producing oil and gas properties located in the Midland Basin adjacent to the company’s existing operating areas in Upton, Reagan, and Glasscock Counties, TX for an aggregate purchase price of $148.5 million in cash (subject to customary purchase price adjustments).
Acquisition Highlights
- 238 net horizontal drilling locations across 5,274 net surface acres in the Company’s core operating area
- Estimated net production of approximately 1,000 barrels of oil equivalent per day during the month of November from three producing horizontal wells. Acquisition also includes one drilled horizontal well that is anticipated to be completed by the seller prior to the closing of the transaction, scheduled for early January 2016.
- High average working interest of 87% and low average royalty burden of 20%
- 100% operated at close with no obligation to develop for two years
- Infrastructure in place to support ongoing horizontal drilling operations
About Parsley Energy, Inc.
Parsley Energy, Inc. is an independent oil and natural gas company focused on the acquisition and development of unconventional oil and natural gas reserves in the Permian Basin in West Texas.
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