Mach Natural Resources LP, Oklahoma City, agreed to pay a total $1.3 billion for entry positions in the Permian and San Juan basins.
In separate transactions, the company agreed to acquire certain oil and gas assets from Sabinal Energy LLC and entities owning oil and gas assets managed by IKAV Energy Inc.
In total, the deals are expected to add about 700,000 net acres—an 33% increase to Mach Natural Resources’ total acreage—and increase company production to 152,000 boe/d from 81,000 boe/d with a pro forma increase in natural gas exposure to 66% from 53%, the company said in a release July 10.
Mach Natural Resources said the deals diversify the asset base and compliment the company’s existing Mid-Continent operations, and gives the company the “opportunity” to deploy a rig in the San Juan Dry Gas Mancos shale in Spring 2026 based on pricing environment.
Permian basin
To enter the Permian basin, Mach agreed to acquire Sabinal’s assets for an unadjusted purchase price of $500 million. The assets include about 130,000 net acres. First-quarter 2025 average production was about 11,000 boe/d, of which 98% was liquids, 2% was natural gas, the company said.
According to Sabinal’s website, its oil-weighted Permian basin assets lie on the Central Basin Platform and Eastern, Northern, and Northwest Shelves of the basin with production from both waterfloods and CO2 floods in a stacked pay environment.
San Juan basin
From IKAV Energy, Mach has agreed to purchase IKAV San Juan for an unadjusted purchase price of $787 million. The assets to be acquired include about 570,000 net acres. First-quarter 2025 average production was about 60,000 boe/d, of which 6% was liquids, 94% was natural gas.
The assets stem from a 2020 deal close in which IKAV acquired Simcoe LLC, a natural gas asset in the San Juan basin in Colorado and New Mexico previously owned by bp plc, marking the company's entry into the conventional energy market.
The two deals are expected to close in third-quarter 2025, each with an effective date of Apr. 1, 2025.
