RSP Permian entered into definitive agreements in separate transactions with multiple sellers to acquire certain undeveloped acreage and oil and gas producing properties located in Glasscock County for an approximate aggregate price of USD 259M in cash, subject to certain adjustments.
The acquisitions cover 7,680 gross (6,652 net) surface acres or 21,440 gross (19,367 net) effective horizontal acres in Glasscock County, adding another primary operating area in the core of the Northern Midland Basin. This implies 188 gross (156 net) horizontal drilling locations, 158 gross (132 net) vertical drilling locations on 40-acre spacing, and 158 gross (132 net) vertical drilling locations on 20-acre spacing.
The aggregate current net production from the acquisitions is approximately 1,106 Boe/d (74% liquids) with 13 vertical wells drilled to date. The acquisitions have net proved reserves of approximately 22 million Boe (9% developed) with over 125 million Boe of resource potential based on internal estimates.
“Our experience and strong relationships in the Permian Basin enabled RSP to successfully negotiate the acquisition of these assets in the core of the Midland Basin from multiple parties. The acquisitions are a significant bolt-on to our existing Glasscock leasehold acreage position which was acquired in the first quarter of this year”, stated Steve Gray, CEO of RSP.