Tulsa-based Laredo Petroleum said May 9 it is acquiring the assets of Sabalo Energy and a non-operating partner in Howard County for about $715 million. Sabalo is a portfolio company of EnCap Investments. The assets include 21,000 contiguous acres with proved developed producing reserves of about 30 million boe and current production of 14,500 boed. Laredo also sold 37.5 percent of its operated PDP reserves on its gas-weighted legacy assets in Glasscock and Reagan counties for $405 million to an affiliate of Sixth Street Partners. Laredo expects to hold more than 30,000 productive contiguous net acres in Howard County after closing July 1.
Jason Pigott, president and CEO, said, “The value derived from employing our efficient, low-cost operations in Howard County has already been established on our current leasehold, and we expect to perform equally well on this new acreage… We will be applying our ESG best practices to the development of this acreage, maintaining our prior commitments to reducing greenhouse gas intensity and methane emissions and eliminating routine flaring.”