The bulk of the acquisition’s 8,700 net acres is located in Martin County, Texas, in a prime location for Wolfberry development.
The acquisition includes 19 producing wells, and ERC has identified 142 proved undeveloped (PUD) locations and approximately 50 probable locations.
Estimated proved reserves total 18 million barrels of oil equivalents (mmboe) of which 16mmboe are PUDs, sweet oil represents 65% of total proved reserves, natural gas liquids comprise 22%, and natural gas makes up the remaining 13%, and the acquisition also includes an estimated 6.2mmboe of probable reserves.
Energen estimates that future development costs associated with proved and probable reserves will be approximately $325m (less estimated plug-and-abandonment costs), and it brings the all-in acquisition cost to approximately $21.11 per barrel of oil equivalents.
