Transaction Details: 

Marathon Oil is acquiring 21,000 in the Northern Delaware (New Mexico) portion of the Permian Basin from Natural Gas Partners-backed Black Mountain Oil & Gas for $700 million in cash.  The asset is currently producing approximately 400 boe/d.  The company has boasted its position to 91,000 net acres, which includes 71,500 in the Northern Delaware. The company plans to add 2-rigs mid-year.

Black Mountain Acreage Highlights:

• Up to 10 target benches within approximately 5,000 feet of stacked pay; base case assumes up to 6 target benches
• Approximately 21,000 net acres with 20,000 net in the Northern Delaware basin; primary targets in world-class Wolfcamp and Bone Spring;
• roughly 400 boed of current production
  Approximately 230 million BOE of risked resource with 440 gross Company operated locations
• Approximately 550 million BOE of total resource potential with 950 total gross Company operated locations

High quality Northern Delaware inventory produces greater than 90% before-tax IRRs at $55 WTI flat and competes for capital allocation at top of Marathon Oil's portfolio
Combined Permian Acreage Highlights:

Permian - Delaware Basin Deal Activity In Last 12 Months