Parsley Energy entered into agreements in separate transactions with multiple sellers to acquire certain undeveloped acreage and producing oil and gas properties located adjacent to the company’s existing operating areas in Reagan County, Texas, for an approximate aggregate price of USD 252M.
“We are thrilled to bolt-on premiere acreage that allows for longer laterals in our primary horizontal development area, where we and others are seeing very promising drilling results”, stated Bryan Sheffield, CEO of Parsley Energy. “With facilities in place, a number of permits already secured, and our existing operations in Reagan County, we expect to realize substantial value from these assets right away.”
Parsley Energy believes the acquired properties are prospective for horizontal drilling in the company’s target horizons, including the Wolfcamp A, Wolfcamp B, Wolfcamp C, Cline, and Atoka formations. The acquisitions are scheduled to close on or before 30 September 2014. Parsley Energy intends to initiate well completions on the two uncompleted wells upon closing, with the first new wells to be spud in the first quarter of 2015. The Company expects to fund the acquisitions entirely with cash-on-hand, and expects to have more than USD 500M of liquidity after the transactions close.
