A. Lee Graham
Athlon Energy Inc. has acquired several parcels in the Midland Basin that sees the Fort Worth firm gain additional drilling property primarily on the western side of basin.
The company paid $873 million in cash for land in Martin, Upton, Andrews, and Glasscock counties near the company’s existing operations.
The acquisitions bring the company 23,500 net acres with an average 97 percent working interest, current net production of about 4,800 barrels of oil equivalent per day and total estimated net reserve potential exceeding 250 million barrels of oil equivalent.
The properties will require one vertical rig drilling about 20 wells per year to hold the acreage, according to the company, which expressed confidence that it can achieve through reallocating its existing eight vertical rig fleet. “Today’s acquisitions exemplify Athlon’s core strategy of acquiring only high-quality properties, demanding strong economic returns, and applying extensive technical expertise to exploit our huge resource potential through the drill bit,” stated Bob Reeves, chairman, president and CEO in a news release.
“With our portfolio of premier assets, Athlon is proud to be a top-tier operator with exposure across the entire northern Midland Basin,” Reeves said.
Athlon Energy is an independent exploration and production company that acquires and develops unconventional oil and liquids-rich natural gas reserves in the Permian Basin. More information is available at www.athlonenergy.com