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Rosehill Acquires Pecos County Acreage for $78 Million

Announced Date
October 31,2017
Deal Value $
78,000,000
Net Acres
4,565
Location Count
325
Transaction Type
Property
Buyer
Rosehill Resources Inc.
Seller
Not Disclosed
Price Per BOE $
40,000
Source Documents:
   Source Link
   Source Link
Location
Region
Permian - Delaware Basin

Country
United States

State
Texas

County
Pecos

Play
Delaware Basin


Production
Production
40 Boe/d

Production Mix
70 % Liquid


Multiples
Production ($/boe/d)
1,950,000

$Price/Net Acre
17,087

$Price/Adj. Net Acre
16,736

$/Location
240,000

Adj. $/acre is based on production @40,000 Boe/d

Transaction Details: 

Rosehill Resources has agreed to acquire 4,565 undeveloped acres in Pecos county for a purchase price of $78 million.  The property is currently producing some 40 boe/d.  The company has identified that the property contains some 325 locations.

The deal closed on December 14, 2017.

J.A. (Alan) Townsend, Rosehill’s President and Chief Executive Officer, commented, “We believe this acquisition demonstrates our continued commitment to grow our strong acreage position in the rapidly evolving Delaware Basin. We are excited to acquire an attractive acreage position in Pecos County at less than $500,000 per drilling location. We are confident in our operational capabilities, which will help us to maximize value and generate sustainable growth. We believe this acquisition is accretive to Rosehill and the full cycle economics will compete favorably with other parts of the Delaware Basin.”

Townsend added, “This deal provides meaningful growth to our portfolio by more than doubling our acreage and drilling locations. We are very encouraged by offset operator results and our geological assessment indicates an anomalously thick Wolfcamp A/B interval with reservoir properties analogous to the Reeves County Core. There is potential across multiple stacked zones. We believe there is tremendous value in our Delaware Basin assets and we are very excited about this opportunity to add substantial value for our shareholders.”

 

Permian - Delaware Basin Deal Activity In Last 12 Months



Related Permian - Delaware Basin Region's Deals



Announced DateBuyerSellerDeal Value($mm)LocationCategory
May-24-2018 Callon Petroleum Co.  - Click here Texas  E&P
May-21-2018 Matador Resources Company  - Click here New Mexico  E&P
Mar-28-2018 Concho Resources, Inc.  - Click here New Mexico  E&P
Feb-26-2018 Not Disclosed  - Click here Texas  E&P
Feb-26-2018 Centennial Resources Development  - Click here New Mexico  E&P

Price History



Date Deal Headline Price$/acre
May-24-2018 Callon Acquires 19,000 Net Acres from Cimarex for $570 MIllion $570.00  Million 15,681
May-21-2018 Matador Acquires Permian Acreage for $133 Million $132.80  Million 12,487
Mar-28-2018 Concho to Acquire RSP In Largest Permian Deal Worth $9.5 Billion $9500.00  Million 79,217

Related Rosehill Resources Inc. Deals



Announced DateBuyerSellerDeal Value($mm)LocationCategory
Dec-22-2017 Rosehill Resources Inc.  - Click here Texas  E&P
Nov-03-2017 Not Disclosed  - Click here Texas  E&P
Dec-20-2016 KLR Energy Acquisition Corp.,Rosehill Resources Inc.  - Click here Texas  E&P