PDC Energy, Inc. (Nasdaq:PDCE) today announced that the Company closed the previously announced Delaware Basin acquisition.
President and Chief Executive Officer, Bart Brookman said:
- Closing price of approximately $1.5 billion, subject to certain post-closing adjustments.
- Approximately 57,000 net acres in Reeves and Culberson Counties, Texas, subject to ongoing title review.
- Current net production of ~7,500 Boe/d from 25 horizontal wells with two additional wells in the completion process.
- Midstream assets including an estimated 50 miles of gas gathering lines, 30 miles of water disposal lines, five salt water disposal wells and two fresh water supply wells.
“This acquisition provides us a deep inventory of horizontal drilling locations that complements our existing core Wattenberg position. We believe we currently have over 700 horizontal locations on the Delaware acreage in the Wolfcamp A, B and C zones. With potential upside through Wolfcamp downspacing, as well as additional potential locations in the Avalon and various Bone Spring horizons, we estimate we may have decades of future drilling locations. Our primary plan in the Delaware for 2017 is to focus on holding acreage with two drilling rigs initially and a third rig early in the fourth quarter.
“We are very excited with the progress being made in building out our Delaware operations team, which includes a number of employees from the seller. Wells completed earlier this year are showing strong production which bolsters our confidence in recent completion enhancements.”
Total capital spend in the Delaware in 2017 is expected to be approximately $235 million, of which approximately $185 million is allocated to spud 28 wells and turn-in-line 19 wells. PDC plans to spend approximately $35 million for leasing, seismic and technical studies with an additional $15 million for midstream and infrastructure related projects. Completions are proceeding on two wells that were spud in September and October, one of which may be turned-in-line before year-end.
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