Diamondback Energy to buy acreage in Permian Basin for $2.43 bn
15 December 2016
US Oil and gas producer Diamondback Energy Inc yesterday struck a deal to buy acreage in Texas' Permian Basin from Brigham Resources Operating LLC and Brigham Resources Midstream LLC, for $2.43 billion
Diamondback will pay the privately held companies $1.62 billion in cash and 7.69 million of its shares.
The Texas-based company plans to fund the cash portion of the deal through a combination of cash on hand and proceeds from one or more capital markets transactions, which may include debt and equity offerings.
The acquisition will give Diamondback leasehold interests on 76,319 net acres located in Pecos and Reeves counties, Texas and take its total leasehold interests to approximately 182,000 net surface acres in the Permian Basin.
The assets, located in Pecos and Reeves counties across over 93,761 gross (76,319 net) acres, includes approximately 9,500 barrels of oil equivalent per day of net current production from 48 gross producing horizontal wells and 16 gross producing vertical wells.
There are also estimated to be six drilled but uncompleted wells.
Diamondback is an independent oil and natural gas company focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas.
Its operations are focused on the horizontal exploitation of multiple intervals within the Wolfcamp, Spraberry, Clearfork, Bone Spring and Cline formations.
''With Diamondback's proven ability to execute, we now believe we have the resource and acreage base to efficiently support 15 to 20 operated rigs. In addition to our soon to be added sixth rig that will begin developing our previously acquired acreage in the Delaware Basin, we plan to add two additional rigs to develop this pending acquisition in 2017,'' said Travis Stice, CEO of Diamondback.