Rosetta Resources has signed an agreement with Comstock Resources to acquire its Permian Basin assets, covering 53,306 net acres located in Reeves and Gaines counties in West Texas, US, for about $768m.
As per the agreement, the assets in the Reeves County located in the Delaware Basin include 40,182 net acres and 74 producing (52 operated) primarily Wolfbone wells. The total current net production is around 3,300 barrels of oil equivalent per day.
The company is expecting growth potential in the area based on an estimate that about 800 net well locations are targeting the Wolfbone on 40-acre vertical well spacing and an estimate of total net risked resources potential of 145 million barrels of oil equivalent.
Rosetta will be the operator of the majority of the Reeves County assets.
The Gaines County assets located in the Midland Basin cover 13,124 net acres and are currently un-delineated and the company is expecting the potential exists for multiple exploratory opportunities in the area.
Rosetta Resources chairman, CEO and president Jim Craddock said the oil-targeted acquisition will help the company to explore new growth opportunities and expand its inventory of oil rich projects.
"These assets complement our Eagle Ford properties and are a good fit with the experience and technical knowledge of our operations team," Craddock added.
"This transaction provides entry into the prolific Permian Basin with both existing production and strong growth potential in proven delineated areas as well as prospective exploration targets on undeveloped acreage."