Oil and gas companies and producers based on the Texas side of the Permian Basin looked to capitalize on the growth. Growth in the New Mexico portion of the region, looking to buy lands in the southeast corner of the state.
Permian Resources Corporation announced an agreement. They will see it purchase about 4,000 leasehold acres and 3,300 royalty acres, mostly in Lea County for $98 million.
The lands were estimated to produce about 1,100 barrels of oil equivalent per day. It is 73 percent oil according to a company announcement.
The price reflected about $8,000 per leasehold acre and $7,000 per royalty acre. This is what the release read, including operated and non-operated assets the company said it could include in future trading.
James Walter, co-chief executive officer at Permian Resources said the move was part of a broader effort by the company to manage its portfolio and shift its footprint to areas of the basin expected to bring higher production and revenue returns.
The Price Reflection
The price reflected about $8,000 per leasehold acre and $7,000 per royalty acre, the release read, including operated and non-operated assets the company said it could include in future trading.
James Walter, co-chief executive officer at Permian Resources said the move was part of a broader effort. This is by the company to manage its portfolio and shift its footprint. They will shift to areas of the basin. There is an expectation to bring higher production and revenue returns.
He said the deal included 45 operated locations and was expected to generate about $100 million. Take note that this is in net cash proceeds.
The company also planned to divest oil and gas properties on the Texas side of the basin in Reeves County, Texas. This is along the New Mexico border.
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Source: Carlsbad Current-Argus
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