Carrizo Oil and Gas has reached a $215m agreement to acquire acreage in the Delaware Basin in the US from Devon Energy.

The acquisition includes around 10,600 gross acres in the Delaware Basin in Reeves and Ward counties.

According to Carrizo, the majority of the acreage is adjacent to its existing holdings.

The acquired assets will add net production of around 2,500Boe/d.

Carrizo Oil and Gas president and CEO S.P. ‘Chip’ Johnson IV said: “This acquisition is an excellent fit with our existing Phantom-area acreage and meaningfully increases our scale in the area.

“The acquisition materially increases our inventory of de-risked drilling locations in the area.”

“The acquisition materially increases our inventory of de-risked drilling locations in the area, as well as offers significant upside potential from delineating the entire position and testing additional zones.

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“As a result, we expect to seamlessly integrate these assets into our existing development plan for the area, which currently assumes a ramp-up in activity in the second half of 2019 as Permian pipeline takeaway is forecast to increase.”

The transaction will allow the company to increase its acreage position in the Delaware Basin to 46,000 net acres on a pro forma basis.

Carrizo noted that more than 100 net potential de-risked drilling locations were identified across the Wolfcamp A and B.

Anticipated to be closed in the fourth quarter of this year, the acquisition is also expected to offer upside potential from additional zones, further delineation and future downspacing.

Carrizo Oil & Gas is engaged in the exploration, development and production of oil and gas from resource plays in the US.