(WO) – Matador Resources Company announced the closing of its wholly-owned subsidiary’s previously-announced acquisition of Advance Energy Partners Holdings, LLC (“Advance”) from EnCap Investments L.P., including Advance’s oil and natural gas producing properties and undeveloped acreage in Lea County, New Mexico and Ward County, Texas (the “Advance Transaction”).
The consideration paid upon the closing of the Advance Transaction consisted of an initial as-adjusted cash purchase price of approximately $1.6 billion. The Advance Transaction may also include potential additional cash consideration of $7.5 million for each month of 2023 in which the average oil price exceeds $85 per bbl.
The Advance Transaction includes approximately 18,500 net acres (99% held by production) in the core of the northern Delaware Basin, most of which is very close to some of Matador’s best acreage where wells with an estimated ultimate recovery of over 1 MMboe have been drilled.
It also provides a significant increase to Matador’s inventory in primary development zones, with 206 gross (174 net) operated locations in core target formations and an additional 38 gross (35 net) upside operated locations in the Wolfcamp D formation.
Joseph Wm. Foran, Matador’s Founder, Chairman and CEO, commented, “These properties are a unique, value-creating opportunity for Matador and all of its stakeholders. Closing this transaction sets Matador up nicely for a great 2023 and an even better 2024.
“The Advance Transaction was funded with a combination of cash on hand and borrowings under our credit agreement. On March 31, 2023, we successfully increased the elected commitment under our credit agreement from $775 million to $1.25 billion. We express our appreciation to each of our banks for their continued support.”
Source: www.worldoil.com
Author: World Oil Staff