Energen Resources has purchased three-year leases for approximately 17,000 net acres in the Bone Spring and Avalon shale trends in the Permian Basin from various Texas state agencies and other entities for $15.3m.
The company estimates that the acreage in Reeves, Ward, Loving, and Winkler counties offer potential for approximately 50 Bone Spring locations and 50 Avalon shale locations.
A horizontal drilling play targeting the third Bone Spring Sands at a vertical depth of 10,500ft-11,500ft, the typical Bone Spring well has estimated ultimate recovery of 400,000-500,000 barrels of oil equivalents.
Energen has drilled eight Bone Spring wells in Ward and Winkler counties and participated in another 23 wells.
The company had planned in December 2010 to drill another 13 Bone Spring net wells in 2011 and at least one Avalon shale well.
In other developments, Energen Resources completed last month on its acquisition of 10,360 net Wolfberry acres in the southeast portion of the trend from a private seller for $75m.