The bolt-on acquisition comprises around 8,300 net acres with current net production of nearly 2,200 barrels of oil equivalent per day, made up of around 60% crude oil.
PDC Energy is looking to add an incremental 240 gross drilling locations through the acquisition while raising its working stakes in nearly 60 existing locations.
The acquisition, which is expected to be closed by the end of the fourth quarter, also brings 30 operated drilled uncompleted wells under its fold.
PDC said that it had also inked an Acreage Exchange Agreement (Acreage Trade) with an unnamed Wattenberg operator to strengthen certain acreage positions.
As per the terms, the deal would feature only leasehold acreage and will not have production, wellbores or existing facilities. The natural gas and oil company expects to get nearly 11,700 net acres in exchange for about 12,100 net acres.
Both the acquisition and the Acreage Trade are located in the Wattenberg field in Weld County, Colorado. Following the transactions, PDC Energy will have two newly consolidated acreage positions dubbed as the ‘Prairie Area’ and the ‘Plains Area’.
The Colorado-based PDC expects the two new consolidated areas and its Kersey Area to be the main focus of its ongoing development activities.
PDC Energy president and CEO Bart Brookman said: “These strategic business development initiatives offer PDC a great opportunity to not only drill more extended-reach lateral wells, but add to our existing inventory of highly economic projects in the Core Wattenberg Field.
“As we have experienced first-hand in our Kersey Area, there are significant capital and operational efficiencies, reduced surface impacts, and incremental value created through consolidated acreage positions.”
