Energen Corporation (EGN) reported that the company signed an agreement to purchase additional oil and gas leasehold in the Permian Basin. The properties acquired have both developed and undeveloped acreage that is prospective for the Wolfberry play.
Energen Corporation will pay $65.8 million for 3,200 net acres in Midland County, Texas. The properties have 29 producing wells, 50 drilling locations and proved and probable reserves totaling 8.5 million barrels of oil equivalent (BOE). The company said that it would not start developing this acreage until 2013 at the earliest, and the cost of development is estimated at $115 million.
Energen Corporation conducts its exploration and production operations through Energen Resources, a subsidiary of the company.