Luxe Energy acquires 18,000 net acres in core of Delaware Basin
18,000 net acres, majority operated with high average working interest
A. Lance Langford, Chief Executive Officer and President of Luxe Energy
As oil prices continue to drop, more and more companies are crowding into the Permian Basin, including Austin-based Luxe Energy, which recently acquired acreage in the Delaware.
Luxe Energy LLC announced Tuesday that it had acquired undeveloped acreage and producing oil and gas properties located in Reeves and Ward Counties from two separate sellers, Endeavor Energy Resources, L.P. and Finley Resources, Inc., for an undisclosed amount.
“We are excited to announce our initial acquisitions in the prolific Delaware Basin in West Texas,” said CEO A. Lance Langford in a press release.
“This is our first step, with the support of Natural Gas Partners, to build an inventory of highly meaningful and economic well locations.”
Langford says the core ‘Deep Basin’ acreage provides several thousand feet of overpressured oil column with numerous prospective intervals.
“The combination of these two positions allow operational efficiencies using best-in-class technologies,” he said. “While we are thrilled to have closed on these two transformational acquisitions, Luxe Energy continues to identify, evaluate, and acquire additional growth opportunities,” said Langford.
Scott Gieselman, managing director of Natural Gas Partners says that NGP is very pleased to be in partnership with the Luxe Energy team, which has been able to assemble such a high quality asset base in a relatively short time.
“We look forward to continuing our partnership with the team as they continue to find additional opportunities around their existing asset base,” said Gieselman.
Combined Acquisition Highlights
- Approximately 18,000 net acres in the core of the Delaware Basin
- Majority operated with high average working interest
- Contiguous acreage enables long lateral drilling locations resulting in premium well economics
- Current net production of approximately 1,000 boe/d
- Opportunity to design, construct and operate midstream infrastructure
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