Laredo Petroleum Acquires Additional Permian Basin Acreage in Texas
NYSE-listed Laredo Petroleum Inc. has entered into an agreement with an undisclosed seller to acquire additional acreage in the Permian basin in Howard County, Texas for a total purchase price of US$11.3 million. As a result, the company has increased its foothold in Howard County to 11,299 net acres.
The assets acquired include 2,758 net acres of Permian basin assets, and contains 12 new 10,000 ft. locations, 12 wells per unit development assumptions, with the potential for 25 additional locations as drilling units are formed. The company increased its working interest and lateral length of 12 existing locations from 45% to 83%. The assets acquired currently have an average daily production of 210 barrels of oil equivalent per day (boe/d), of which 80% is oil.
In April this year, the company had entered into another agreement to acquire 180 net acres in Howard County for US$600,000, plus certain additional contingent payments.
“We have now closed on our third bolt-on acquisition in Howard County since our initial investment late last year, adding additional high-margin drilling locations at prices not seen since the introduction of horizontal drilling in the Midland Basin,” said Laredo Petroleum’s President & CEO Jason Pigott.
“The company’s strong financial position and history as a low-cost operator underpin this strategy as we begin to develop our Howard County asset and remain focused on executing similar, reasonably-priced bolt-on acquisitions around our core position in Howard County,” he added.
Tulsa-based Laredo Petroleum is focused on the acquisition, exploration and development of oil and natural gas properties and the gathering of oil and liquids-rich natural gas, primarily in the Permian basin of West Texas.