US-based oil producer APA has acquired Texas Delaware basin properties from an undisclosed firm in a deal worth $505m.

The acquired assets are located primarily in the Loving and Reeves counties, near APA’s existing operations.

APA said these assets comprise producing wells, an inventory of undrilled locations, and wells in the process of drilling and completion.

With the transaction, APA expects its production to average up to 14,000 barrels of oil equivalent per day this year. 

The deal consideration is $555m, including post-effective date adjustments to date.

APA did not disclose the seller’s identity. Despite this, three sources familiar with the matter told Reuters that these assets were owned by Titus Oil & Gas.

Backed by private equity firm NGP Energy Capital Management, Titus Oil & Gas was looking to offload its oil and gas assets to capitalise on higher energy prices and secure ‘bumper valuations’.

In June, Titus and NGP agreed to sell oil producing assets in New Mexico, US, to Earthstone Energy in a deal worth $627m.

Earlier this year, APA divested $805m worth of mostly non-operated properties, located in west Texas and southeast New Mexico in the Delaware basin.

It also offloaded four million shares of its subsidiary oil and gas midstream company Kinetik for approximately $224m.