Tulsa-based Vital Energy said last week it agreed to expand its position in Permian Basin with three transactions totaling about $1.165 billion. Vital will acquire assets from affiliates of Henry Energy and Henry Resources, Tall City Property Holdings and Maple Energy Holdings. Each deal is expected to close in 2023Q4, and they will add about 53,000 net acres and proved reserves of 248 million barrels of oil equivalent (44 percent oil) as of yearend 2022. Vital’s current production will increase by 35,000 boed (50 percent oil).
Vital agreed to purchase substantially all of Henry’s Midland and Delaware basin assets, all of Tall City’s Delaware Basin assets and all of Maple’s Delaware Basin assets. Vital said Sept. 13 it expects to operate one drilling rig on the acquired acreage and use a spot completions crew for about one month to complete four “in process” wells. Vital now will have about 250,000 net acres with estimated 2024 total production of about 112,000 boed. The deals add about 150 gross high-value locations.
Jason Pigott, president and CEO, said, “These transactions increase our scale in the Permian and fit with our proven strategy of creating value through disciplined acquisitions. We have demonstrated our ability to effectively consolidate Permian assets and identify sustainable synergies to lower costs, improve margins and enhance free cash flow.” Vital, renamed from Laredo Petroleum in January, has announced five acquisitions this year.