Energen (EGN) announced two separate purchases of oil and gas properties in the Permian Basin that are prospective for the Wolfberry play. The company expects to pay approximately $211.9 million for the acreage.
Energen is paying $157.5 million for acreage in Martin and Howard counties in Texas with proved and probable reserves totaling 16.5 million barrels of oil equivalent (BOE). The properties contain 24 producing wells and an estimated 113 future drilling locations.
Energen is paying $54.4 million for acreage in Glasscock County, Texas. The properties have proved, probable and possible reserves of 8.9 million BOE, seven producing wells and an estimated 81 future drilling locations.
Energen said that the two property packages have current production of 1,500 BOE per day and the company expects the deals to close before the end of 2012.
The company expects to target the Third Bone Spring sands, Avalon Shale, Wolfcamp Shale, and the Wolfbone play across its Permian Basin portfolio.