Midland-based Colgate Energy said this week it is continuing expansion in Delaware Basin by agreeing to purchase from an undisclosed seller about 22,000 net acres in Eddy and Lea counties in New Mexico for $190 million. The majority of the assets directly offset Colgate’s legacy Parkway operating area with current average net daily production of 750 boed (95 percent operated). The purchase adds more than 200 high-quality locations that complement Colgate’s existing inventory. It’s Colgate’s third purchase in Delaware Basin this year.
Will Hickey, co-CEO, said, “The acquisition of this high-quality asset base adds to our existing inventory in the northern Delaware Basin where we have recently drilled some of the best wells in the company’s history… We have a very high bar for acquisitions, and this one was just too good to pass up. We are excited to allocate rig activity to these properties next year.” Closing is expected in 2022Q1.
FILED UNDER: PBOG NEWSLETTER