By OGJ editors
HOUSTON, Apr. 17 -- Pogo Producing Co., Houston, signed a definitive agreement to acquire private Latigo Petroleum Inc., Tulsa, for $750 million. Closing is expected by May 31.
Latigo's assets include 275 bcf of natural gas equivalent proved reserves, 51% oil, on 404,700 net acres plus high-quality probable reserves and significant exploration potential in the Permian basin and Texas Panhandle, Pogo said.
The acquired assets will provide Pogo Producing with a 13% hike in proved reserves to 2.317 tcf of gas equivalent.
Latigo operates more than 90% of its production of 3,300 net b/d of oil and 20 MMcfd of gas, and the assets have more than 400 development and exploratory drilling locations.
The company has been developing Collie field in Reeves and Ward counties and the Courson Ranches areas in Roberts and Ochiltree counties.