PDC Energy seals Delaware basin bolt-on acquisition

DENVER, Colorado -- PDC Energy has closed on the acquisition of approximately 4,500 net acres in Reeves and Culberson counties, Texas, from Fortuna Resources Holdings for approximately $118 million.

PDC’s working interest in the acquired leasehold is 100% and PDC expects to operate 100% of the properties. The acquired properties are concentrated in the company’s Central acreage block contiguous with the company’s acreage from the recently closed acquisition of approximately 57,000 net acres in Reeves and Culberson counties. Current net production associated with the acquisition is approximately 300 boed. Also included is a drilled but uncompleted (DUC) horizontal well, and a salt water disposal well.

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

Bart Brookman, president and CEO of PDC, said, “Our net acreage, drilling inventory and estimated reserve potential in the basin are expected to increase by approximately ten percent with this transaction.”

Fortuna Resources Holdings is a Permian-basin focused producer sponsored by certain affiliates of Och-Ziff Capital Management Group.