Parsley Energy has signed an agreement to acquire certain assets in the oil-rich Permian Basin from Double Eagle Energy Permian for about $2.8bn.
Under the terms of the deal, Parsley Energy will add 71,000 net leasehold acres including certain undeveloped acreage and producing oil and gas properties in the core of the Midland Basin.
The new assets are expected to increase the firm’s total acreage in the Permian Basin to approximately 227,000 acres.
Assets considered for acquisition include 23 drilled uncompleted wells, variously targeting the Lower Spraberry, Middle Spraberry, Wolfcamp A, and Wolfcamp B formations.
Parsley will also buy approximately 3,300 net horizontal drilling locations, including approximately 1,800 net locations in high priority target intervals in Lower Spraberry, Wolfcamp A, Wolfcamp B formations.
Parsley Energy chairman and CEO Bryan Sheffield said: "We are pleased to solidify Parsley's position as a leading Permian operator through our largest acquisition to date.
"This transaction maintains our focus on core of the core acreage with the most favorable reservoir characteristics and positions us for years of production growth at the low end of the cost curve.
“The infusion of high quality drilling locations substantially increases our peak production potential and extends our inventory of drilling locations while enhancing the quality of that inventory."
Subject to the satisfaction of customary closing conditions, the deal is scheduled to be completed before 20 April 2017.
Meanwhile, Parsley Energy said it has increased its 2017 net daily production projections by 5,000 barrels a day to a range of 62,000 to 68,000.
Image: Parsley Energy intends to boost its operations in oil-rich Permian Basin with new acquisition. Photo: courtesy of suwatpo/FreeDigitalPhotos.net.