By March 21, 2017 0 Comments Read More →

Marathon Oil buys $700 million Permian acreage

marathon oil

Marathon Oil increased its stake in the Permian Basin with the purchase of 21,000 acres in the Delaware Basin. 

Marathon Oil exiting Canadian oilsands

For the second time in less than two weeks, Marathon Oil has increased its stake in the Permian Basin by purchasing land in the Delaware Basin in New Mexico.   On Tuesday, the company announced it was purchasing about 21,000 acres from Black Mountain Oil & Gas for $700 million.

Marathon says the sale is part of the company’s plan to focus on higher margin, lower cost US assets.

“Today’s 21,000 acre bolt-on in the Northern Delaware is an excellent fit with the basin entry acquisition we announced earlier this month. The combined deals provide us more than 90,000 acres in the Permian, over 70,000 of which is concentrated in the Northern Delaware,” Marathon Oil President and CEO Lee Tillman said.

On March 9, the company announced it purchased approximately 70,000 acres in the Permian Basin from BC Operating along with other entities for $1.1 billion cash.  51,500 acres included in the purchase are located in the Northern Delaware Basin in New Mexico and have a current production of about 5,000 net boed.

Marathon joins a number of oil producers flocking to the Permian Basin, home to a sprawling pipeline network, abundant labor and supplies as well as warm winters that allow for year-round work.

Earlier this month, Marathon Oil announced the sale of its Canadian oilsands business to Canadian National Resources Limited for $2.5 billion.

 

 

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