Parsley Energy Acquire Midland Basin Assets for $400 Million, Texas
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Parsley Energy, Inc. has entered into an agreement to acquire certain undeveloped acreage and producing oil and gas properties in Glasscock County, Texas, as well as associated mineral and overriding royalty interests, for an aggregate purchase price of $400 million in cash, subject to customary closing conditions. Parsley intends to finance this acquisition through debt and equity issuances.
Acquisition Highlights:
• 11,672 gross (9,140 net) leasehold acres near existing Parsley leasehold in Glasscock County, Texas
• Mineral and overriding royalty interests boost net revenue interest by approximately 5 percent on average
• Estimated current net production of approximately 270 Boe per day from 67 gross (60 net) vertical wells
• 240 gross (215 net) horizontal drilling locations in the Lower Spraberry, Wolfcamp A, and Wolfcamp B formations, based on 660’ between-well spacing, with an estimated average lateral length of approximately 7,500’
• Additional horizontal drilling locations in the Middle Spraberry, Wolfcamp C, and Cline formations
• High average working interest of approximately 92 percent on identified drilling locations
• 99 percent held by production
• Pre-existing facilities and infrastructure, including five saltwater disposal wells, facilitate ongoing development
• Scheduled to close on or before October 4, 2016, subject to the satisfaction of customary closing conditions
“The pending acquisition of leasehold and associated assets establishes Glasscock County as another key development area for Parsley Energy. Offset well performance and initial results on our first horizontal well in the area suggest that the properties to be acquired may compete with the best of our existing horizontal drilling inventory, and the acquisition of associated royalty interests boosts the return profile of these properties. We continue to build a high-quality acreage footprint consisting of favorably distributed development areas that can accommodate significant rig count additions, and we believe this acquisition represents an important step toward a large-scale, basin-wide development program that can generate sustainably strong production and cash flow growth,” said Bryan Sheffield, CEO of Parsley Energy.
About Parsley Energy
Parsley Energy, Inc. is an independent oil and natural gas company focused on the acquisition and development of unconventional oil and natural gas reserves in the Permian Basin in West Texas.
To stop by Parsley Energy’s website, CLICK HERE
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