Dallas-based Matador Resources said Thursday it agreed to acquire assets in Delaware Basin from EnCap-backed Paloma Permian and Ridge Runner Resources. The transactions add producing assets, undeveloped acreage and about 300 net drilling locations. The deals increase Matador’s Delaware position to about 240,000 net acres.
A subsidiary of Matador will acquire Paloma Permian for $1.275 billion. Assets include 16,235 net undeveloped acres in Eddy and Lea counties, N.M., with third quarter estimated production of 10,600 to 11,600 boed (57 percent oil) with 156 net locations. Joseph Wm. Foran, chairman and CEO, said, “We anticipate this acquisition will be integrated efficiently into Matador’s operating plan, contribute to Matador’s cash flow generation, and deliver significant efficiency gains, increases in oil and natural gas production, and reserve growth.”
Matador also will acquire undeveloped acreage in what it believes is “the heart of the Woodford play in west Texas and southeast New Mexico” from Ridge Runner. The deal adds at least 150 net operated Woodford locations. Matador will now have about 50,000 contiguous, undeveloped net acres in Woodford formation primarily located in the Antelope Ridge in Lea County and in west Texas.
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