The firm expects to complete 5-7 wells in the Southern Delaware this year. Of those, Parsley expects 3-5 wells to be completed on the acquired mineral acreage. The deal, scheduled to close by July 14, is expected to be financed through debt and equity issuances.
Separately, Parsley acquired additional working interests in the firm’s Southern Delaware leasehold in Pecos and Reeves counties totaling 885 net acres for $9 million in cash. The deal closed on May 10. All of the incremental working interests are associated with mineral acreage, bringing Parsley’s working interest to 100% and NRI to 87.5% in the properties.
Assuming just one flow unit in the upper Wolfcamp target interval, the acquired working interests translate to an additional 10 net horizontal drilling locations with an average lateral length of 7,250 ft.
Parsley in 2014 agreed to buy from “multiple sellers” undeveloped and productive acreage in Reagan County, Tex., for $252 million (OGJ Online, Aug. 26, 2014).