Marathon Oil has signed a definitive agreement to acquire approximately 70,000 net surface acres in the Permian Basin from BC Operating and other entities for $1.1 billion.
The acquisition includes 51,500 acres in the Northern Delaware basin of New Mexico, and current production of approximately 5,000 net barrels of oil equivalent per day (boed).
"Acquiring 70,000 net acres in the world-class Permian basin is a transformative milestones that will further align our portfolio with our strategy. The Northern Delaware basin features outstanding well economics that compete at the top of our organic portfolio and is experiencing a positive rate of change in well performance unrivaled in U.S. unconventional basins. This deal expands the quality and depth of our already robust inventory while securing a foundational footprint in the Delaware basin with 5,000 feet of oil-rich stacked pay," Marathon Oil president and CEO Lee Tillman said."
The BC acquisition is expected to close in second quarter 2017 with an effective date of Jan. 1, 2017.
The major highlights of the Permian Basin acquisition includes approximately 900 million BOE of total resource potential with 1,700 total upside locations from both tighter density and secondary targets
In a statement Marathon Oil said it saw further growth opportunities from acquired acreage in Northwest Shelf as well as further bolt-on acquisitions