Dallas, Texas 07/21/2014 (FINANCIALSTRENDS) – Diamondback Energy Inc. (NASDAQ:FANG) today announced to have inked a definitive purchase agreement to acquire additional leasehold interests in the Midland Basin. The transaction is valued at an aggregate purchase price of $538 million. Upon completion of this transaction, the company will gain leasehold interests primarily located in western Glasscock and Midland Counties. Out of 13,136 net acres, or 16,773 gross acres, 88 percent are primarily operated. The acreage comprises 94 net, or 131 gross producing wells with net production of more than 2,170 barrels of oil equivalent per day reported in May 2014. Based on the Company’s internal estimates as of June 2014, net proved reserves were in excess of 5 million barrels of oil equivalent. The acquisition is scheduled to close in the early half of September 2014.
Diamondback Energy Inc. (NASDAQ:FANG) expects significant growth potential for horizontal development on this leasehold. The company estimates 396 gross, or 256 net, identified potential horizontal drilling locations on this acreage. The acreage is prospective for horizontal drilling in the Wolfcamp A, Wolfcamp B, Wolfcamp D, Middle Spraberry, Clearfork and Spraberry formations. Upon closing of the acquisition, the company’s total position in the Midland Basin will increase to approximately 85,000 net acres.
Diamondback Energy Inc. (NASDAQ:FANG)’s average daily production for 2Q14 increased 32 percent on a quarter over quarter basis to 17,836 barrels of oil equivalent per day as compared to an average of 13,552 barrels of oil equivalent per day in 1Q14. On a year over year basis, the company’s average daily production increased 171 percent during 2Q14 as compared to 2Q13.
Diamondback Energy, headquartered in Texas, is an independent oil and gas company focused on the acquisition, exploration and development of unconventional oil and gas reserves in the Permian Basin in West Texas.