The two companies considered for acquisition are managed by Kimmeridge Energy Management Company.

Scheduled to be completed in the fourth quarter of 2016, the deals are subject to due diligence and certain customary closing conditions. 

As part of the agreements, PDC Energy will acquire approximately 57,000 net acres in Reeves and Culberson Counties, Texas. These include approximately 41,000 net acres in Reeves County and 16,000 net acres in Culberson County.

The acres currently have a net production capacity of 7,000 barrels of oil equivalent per day (boe/d), which include approximately 42% oil and 65% liquids.

PDC Energy president and CEO Bart Brookman said: "Through a methodical approach, we were able to execute our stated acquisition strategy and add an extensive inventory of highly-economic drilling locations that complement our already strong portfolio.”

With the acquisitions, PDC Energy will have an average working interest of 93% in the net acres.

PDC Energy corporate development and strategy Lance Lauck executive vice-president said: "This acquisition is a significant step towards executing our vision of becoming a premier mid-cap E&P company.

“Adding this Delaware position to our Core Wattenberg acreage gives us more than one billion net Boe of liquid-rich reserve potential in two of the top-tier US onshore basins.

“PDC will continue to emphasize the importance of a strong balance sheet while we pursue additional value creation through operational enhancements and inventory expansion."

Colorado-based PDC Energy is engaged in exploration and production of oil, natural gas and NGLs. It has operations primarily in the Wattenberg Field in Colorado and in the Utica Shale in southeastern Ohio.

Image: PDC Energy intends to become a premier mid-cap exploration and production company. Photo: courtesy of Rosemary Ratcliff/