Oil and natural gas firm Parsley Energy has agreed to acquire several undeveloped acreage and producing oil and gas properties in the US for around $252m.
Parsley signed agreements in separate transactions with various sellers for the properties, which are situated near the company’s current operating areas in Reagan County, Texas.
The acquisition includes 157 net horizontal drilling locations across 5,472 net acres in Reagan County and 140 net vertical 80-acre and 40-acre drilling locations, as well as 140 net vertical 20-acre drilling locations.
Parsley said nine horizontal wells are in several stages of development, including three wells on one pad and two wells with production history.
Five wells are flowing back while one well is waiting for fracture treatment, and one is being drilled currently.
Net production upon closing is estimated to be around 1,800boepd, comprising approximately 300boepd from the two producing wells and 1,500boepd from the five recently completed wells.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataParsley Energy CEO Bryan Sheffield said: "We are thrilled to bolt-on premiere acreage that allows for longer laterals in our primary horizontal development area, where we and others are seeing very promising drilling results.
"With facilities in place, a number of permits already secured and our existing operations in Reagan County, we expect to realise substantial value from these assets right away."
The company aims to start well completions on the two uncompleted wells after closing and the initial new wells are expected to be drilled in the first quarter of 2015.
Parsley Energy has signed an agreement with a private midstream services company for firm pipeline capacity from its North Upton and South Midland County acreage to Colorado City, Texas.
The move will allow Parsley to bypass the Midland pricing market for a substantial portion of its crude oil production.
Deliveries on the pipeline are expected to start in early 2015.
