PDC Energy adds 4,500 net acres in Delaware basin

PDC Energy Inc., Denver, has supplemented its 2016 entry into the Delaware basin by acquiring an additional 4,500 net acres in Reeves and Culberson Counties, Tex., from Fortuna Resources Holdings LLC, Houston, for $118 million in cash.

The completed deal includes 100% interest and 100% operatorship across the entire leasehold, which is contiguous with PDC’s acreage from its recently closed $1.5-billion purchase of 57,000 net acres in Reeves and Culberson Counties from Kimmeridge Energy Management Co. LLC (OGJ Online, Aug. 24, 2016).

Net production from the 4,500 net acres is 300 boe/d. Also included are a drilled but uncompleted (DUC) horizontal well and a salt water disposal well.

PDC estimates the acquired acreage contains 75 gross 1-mile horizontal drilling locations based on four wells per section in each of the Wolfcamp A, B, and C zones. The estimate is based on the assumptions utilized by the firm in its first Delaware basin deal. PDC plans to integrate the newly acquired acreage into its development drilling plans for its Central acreage block.

“Our net acreage, drilling inventory, and estimated reserve potential in the basin are expected to increase by approximately 10% with this transaction,” said Bart Brookman, PDC president and chief executive officer. “Additionally, by creating a large, contiguous acreage block, we have the opportunity to focus on longer lateral development while optimizing our operational efficiencies.”

Fortuna Resources is a Permian-focused independent producer sponsored by affiliates of Och-Ziff Capital Management Group LLC.

Contact Matt Zborowski at [email protected].