The assets considered for acquisition include about 6,500 barrels of oil equivalent per day (boe/d), of which 55% is oil, from 23 producing wells and two drilled but uncompleted horizontal laterals.
Additional assets include 18,100 net acres in Reeves, Loving, Ward and Winkler counties in Texas and 920 gross undeveloped locations in the geologic sweet spot of the Delaware Basin.
WPX Energy expects the acquisition to increase its Permian operations to more than 120,000 net acres while boosting its drilling inventory of top-tier Delaware locations.
The firm entered the Permian Basin with the purchase of RKI Exploration and Production in August 2015 and since then it has added approximately 32,000 net acres in the core of the Delaware Basin.
WPX chairman, president and CEO Rick Muncrief said: “The acquisition leverages our experience to create long-term shareholder value, further builds our inventory of core acreage and accelerates our oil growth with cash on hand and operating cash flow without adding incremental debt.”
With the acquisition, WPX is expecting 30% oil growth and 25% overall production growth in 2017.
WPX plans to use combination of proceeds from an equity issuance and cash on hand to acquire the assets. The transaction is scheduled to be closed in approximately 60 days.
