Independent producer Parsley Energy of Austin, Texas, said Monday it’s acquiring mineral rights under approximately 30,000 acres consisting of Parsley leasehold and other adjacent properties in Texas’ Pecos and Reeves counties for $280.5 million in cash.
The proposed transaction is scheduled to close by July 14, 2016, subject to customary closing conditions. Parsley intends to finance this acquisition through debt and equity issuances announced concurrently with the announcement of the acquisition.
Parsley Energy acquires Permian mineral rights for $280.5M in cash
The acquired mineral interests average 17.5% and boost Parsley’s NRI on 186 horizontal Upper Wolfcamp locations from 75% to 92.5%.
Estimated net current production associated with acquired mineral rights is roughly 280 barrels of oil equivalent per day (BOE/d), according to Parsley. A total of 82% of mineral acreage represents Parsley leasehold, with the balance leased and operated by other operators.
Parsley also acquired surface rights on approximately 80% of mineral acreage, eliminating compensation for surface damages and water procurement, among other costs, and also facilitating optimal well and facility placement.
The transaction is scheduled to close on July 14.