US-based Athlon Energy has entered into multiple definitive agreements with five unrelated third-party sellers to acquire certain producing properties and undeveloped acreage in northern Midland basin, for $873m.
Located across Martin, Upton, Andrews, and Glasscock counties, the proposed properties will require one vertical rig drilling approximately 20 wells annually, in order to hold the acreage, which can be achieved through the reallocation of the company’s existing eight vertical rig fleet.
The company, which already operates one horizontal rig, plans to add its second horizontal rig at the end of April, while the third horizontal rig will be added at the closing of the acquisitions, and plans to bring the number of rigs to four by early fourth quarter 2014.
Athlon Energy chairman, president and chief executive officer Bob Reeves said that today’s acquisitions exemplify Athlon’s core strategy of acquiring only high-quality properties, demanding strong economic returns, and applying extensive technical expertise to exploit its huge resource potential through the drill bit.
"With our portfolio of premier assets, Athlon is proud to be a top-tier operator with exposure across the entire northern Midland Basin," added Reeves.