US-based exploration and production company Abraxas Petroleum has signed an agreement to acquire 2,008 net acres and 33 barrels of oil equivalent per day in Ward County, Texas, prospective for the Wolfcamp / Bone Spring.
The acquisition, valued at $22.2m, will add 25 net operated potential locations and eight net non-operated potential locations.
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It will also include about 1,888 net acres held by production and 120 net leasehold acres covered by a primary term lease of three years.
In addition to interest in three existing Abraxas operated units, the proposed acquisition comprises interest in three incremental operated units and four non-operated units.
Abraxas Petroleum president and CEO Bob Watson said: “During our January 2017 equity raise, our stated corporate goals were to add Wolfcamp / Bone Spring acres in the Delaware Basin at a reasonable cost, continue to derisk our Delaware Basin acreage position, build our production base to a critical mass by year end and maintain our best-in-class balance sheet.
“This Delaware Basin acquisition fits seamlessly within our existing acreage footprint and increases our exposure to the Delaware Basin Bone Spring / Wolfcamp play by approximately 35% to 7,757 net acres.”
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By GlobalDataThe acreage purchase was agreed at a price of around $10,000 per acre.
According to the company, similar bolt-on opportunities are planned to be evaluated to expand its presence in the Delaware Basin.
The closure of the transaction is expected in June.
Abraxas has operations across the Rocky Mountain, Permian Basin and South Texas regions of the US.
