The acreage located in Eddy County was purchased by the Delaware Basin operator through two separate transactions with undisclosed third-parties
Permian Resources has pinpointed over 100 gross operated locations with favourable NRIs on the acquired properties. (Credit: Monika Wrangel from Pixabay)
Permian Resources has disclosed the acquisition of nearly 11,500 net leasehold acres and 4,000 net royalty acres in New Mexico for a total consideration of around $175m.
The acreage located in Eddy County was acquired through two separate transactions with undisclosed third-parties.
After adjusting for production value, the consideration comes to roughly $10,000 per net leasehold acre.
According to Permian Resources, the purchased properties primarily comprise undeveloped acreage, adjoining legacy Earthstone’s position. They are said to offset the company’s Parkway asset.
Permian Resources has pinpointed over 100 gross operated, two-mile locations with favourable net revenue interests (NRIs) on these acquired properties, which are immediately competing for capital allocation.
Permian Resources co-CEO Will Hickey said: “The quality of the acquired acreage is consistent with our core Parkway position, which represents one of the highest returning assets within our portfolio. We are excited to begin development on the recently acquired acreage later this year.”
Based in Texas, the company is engaged in acquiring, optimising, and developing high-return oil and natural gas assets.
During Q1 2024, Permian Resources undertook an acreage trade that augmented its portfolio with high-return, operated inventory featuring favourable NRIs, thereby strengthening its presence in Lea County.
The firm acquired approximately 2,000 net acres with an increased working interest, adjacent to its current holdings.
Concurrently, it divested approximately 2,000 net acres of non-operated acreage and lower working interest operated acreage. These primarily consisted of shorter lateral development that did not align with the company’s near-term drill schedule.
Development activities on the newly acquired acreage are expected to commence in 2024, said the Delaware Basin operator.
In Q4 2023, Permian Resources finalised the previously announced sale of legacy Earthstone’s Eagle Ford assets for $67m. The assets involved in the deal have a net production of around 1,000 barrels of oil equivalent per day.
Permian Resources co-CEO James Walter said: “Since closing the Earthstone transaction, Permian Resources has added 14,000 net acres and 5,300 net royalty acres located in the core of the Delaware Basin at attractive valuations.
“As a result of our portfolio management efforts over the past year, Permian Resources has more than replaced the approximately 150 wells included in its 2023 development schedule, effectively increasing inventory life.”