Scorpion Oil & Gas LLC, Houston, closed on a deal with an undisclosed seller for Permian basin assets in New Mexico.
With the deal, the privately held company enters the Permian basin with a footprint spanning nearly 6,000 gross acres in Lea County, NM. The acquisition doubles the company's oil and gas production and provides an attractive platform for future investments across the basin, the company said in a late September release.
The assets consist of both vertical and horizontal wells dating back to the 1950's with a shallow decline, the company said. Production of about 400 boe/d (85% oil) is spread across acreage that is largely held by production with nearly 100% working interest. Proved reserves are 1.0 MMboe.
Scorpion Oil & Gas was founded in 2018. It is focused on the acquisition, exploration, and development of crude oil and natural gas properties in the Permian basin of New Mexico and West Texas along with legacy production on the Gulf Coast.
