The assets, which are situated in the Midland sub-basin, primarily in Martin and Andrews counties in west Texas, are expected to increase the company’s exploration and production footprint in the region.
The acquired assets include current net production of about 6,700 barrels of oil equivalent per day (Boepd) and net proved reserves based on internal estimates of around 47 million barrels of oil equivalent (MMBoe).
The acquired assets also include nine potential horizontal development targets over a 3,000 foot vertical section and over 200 vertical and up to 775 horizontal drilling locations.
In addition, the company will acquire 26,519 net acres with an average working interest of 94% and a 75% net revenue interest.
QEP Energy chairman, president and CEO Chuck Stanley said, "Our New Ventures team has been actively focused on expanding our footprint in the world-class crude oil provinces of North America, first in the Williston Basin and now in the Permian Basin."
