Laredo Petroleum Inc., Tulsa, Okla., has agreed to acquire about 20,000 net acres in western Glasscock County, Tex., from Pioneer Natural Resources Co., Dallas, for $230 million, subject to customary closing price adjustments.
The deal adds leasehold of about 20,000 net acres (about 80% operated, 98% held by production) directly offsetting the company’s existing western Glasscock leasehold in the Midland basin, increasing the company’s acreage to about 22,000 net acres, the company said in a Sept. 19 release.
About 135 gross operated oil-weighted locations are included in the deal (90% WI, average royalty of 20%) with an average lateral length of 9,700 ft.
Current production is about 4,400 boe/d (59% oil, 82% liquids).
The purchase price is comprised of $160 million in cash and issuance of 959,691 shares of Laredo common equity to Pioneer.
Laredo plans to maintain expected 2022 activity levels of two drilling rigs and one completions crew.
In May, Laredo Petroleum agreed to acquire the assets of Sabalo Energy LLC and a non-operating partner for $715 million, adding 21,000 contiguous net acres directly offsetting its existing Howard County leasehold (OGJ Online, May 10, 2021).
The transaction is expected to close in October 2021.