A subsidiary of Dallas-based Matador Resources said this week it has agreed to acquire a subsidiary of Ameredev II Parent and its oil and gas producing properties and undeveloped acreage in Loving and Winkler counties in Texas and Lea County, N.M. The deal includes 19 percent interest in Pinon Midstream and its assets in southern Lea County. Closing of the $1.905 billion cash deal is expected in late 3Q.
Joseph Wm. Foran, chairman and CEO, said Wednesday, “We evaluated this opportunity based on high rock quality, strong existing production and cash flow profile, significant reserves additions, high-quality inventory, strategic fit within our existing portfolio, and expansion of our midstream footprint with an ownership interest in Pinon.”
Estimated production in 3Q for Ameredev is 25,000 to 26,000 boed (65 percent oil) from 33,500 contiguous net acres (82 percent held by production). Most of the acreage is in Matador’s Antelope Ridge area in southern Lea County. Matador said the acreage immediately competes for development capital so it expects to continue operating nine drilling rigs on the combined 192,000 net acres. Proved reserves for the combined company are 578 million boe – 26 percent increase for Matador.