Independent energy company Vital Energy has acquired additional working interests in key producing assets located in the Permian Basin for around $55m.

The assets under the transaction were part of the recent deal with Henry Energy, Moriah Henry Partners and Henry Resources.

According to a company statement, the latest deal will increase Vital Energy’s working interest in 45 wells by an average of 24%.

This will boost Vital Energy’s estimated 2024 production by approximately 1,400 BOE/d (57% oil) and 2024 Free Cash Flow by approximately $20m.

Vital Energy president and CEO Jason Pigott said: “This transaction further demonstrates the opportunities provided by our increased scale in the Permian.

“Our larger operating footprint across the Midland and Delaware basins continues to drive new efficiencies through bolt-on transactions that increase working interest or optimise our development plans by enabling longer laterals. As we successfully integrate these high-value acquisitions we expect to see continued gains in capital efficiency and stronger Free Cash Flow.”

In September 2023, Vital Energy signed three definitive agreements worth about $1.165bn to scale operations in the Permian Basin. This included deals with Henry Energy and Henry Resources.

The tag-along rights by owners of certain assets enabled Vital Energy to buy and finance the assets on the same terms as the Henry purchase and sale agreement.

Vital Energy funded the transaction by issuing 627,000 shares of common stock and 595,000 shares of its 2.0% cumulative mandatorily convertible preferred securities.

Headquartered in Tulsa, Oklahoma, Vital Energy focuses on the development of oil and natural gas properties in the Permian Basin of West Texas.