Luxe Energy announces sale of Southern Delaware Basin assets for $540 million

19,180 net surface acres in Reeves and Ward counties, approximately 1,000 boe/d of current net production

Luxe Energy

A. Lance Langford, Chief Executive Officer and President of Luxe Energy

AUSTIN, Texas – Luxe Energy LLC has announced it entered an agreement with an undisclosed third party buyer for the purchase of Luxe’s Southern Delaware Basin leasehold interests and assets for $560 million.

Luxe Energy’s assets are primarily operated leasehold interests, the majority of which are located along the Pecos River in Reeves and Ward counties, Texas.

“I am proud of the accomplishments of the entire Luxe organization. Our team successfully built a contiguous, world-class leasehold position in the premier Southern Delaware Basin, and subsequently entered into a definitive agreement for the sale of our assets,” said A. Lance Langford, President of Luxe Energy.

TRANSACTION HIGHLIGHTS:

  • 19,180 net surface acres primarily in Reeves and Ward counties
  • Approximately 1,000 boe/d of current net production
  • Contiguous acreage enables long lateral drilling locations resulting in premium well economics
  • Salt water disposal infrastructure and additional assets included in the transaction

“We are very appreciative of the support of our equity sponsor, Natural Gas Partners, and look forward to working together to identify, evaluate, and execute on additional acquisition opportunities,” said Langford.

The transaction is expected to close in Sept. 2016; however, the transaction remains subject to completion of due diligence and satisfaction of other closing conditions.

Posted in: Energy Financial

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