99% HBP by 220 producing vertical wells
EnCap-backed PetroLegacy Energy II, LLC closed on the acquisition of roughly 20,000 net acres in northeastern Martin County, Texas, from Pioneer Natural Resources Company (ticker: PXD) for $266 million.
PetroLegacy said the Northern Midland Basin assets are currently producing approximately 1,500 BOEPD and will provide PetroLegacy with horizontal drilling locations across the property prospective for the Lower Spraberry, Wolfcamp A and Wolfcamp B formations.
The company said it believes the asset contains additional horizontal drilling potential in other stacked pay formations including the Middle Spraberry, Jo Mill and additional Wolfcamp horizons.
“The acreage is 99% held by production, by 220 producing vertical wells, and positioned perfectly for 7500’-10,000’ laterals based on the blocky nature of the position,” a media spokesperson told Oil & Gas 360® on Monday.
PetroLegacy Energy II, LLC was formed in September 2016 with an equity commitment from EnCap Investments, L.P.
PetroLegacy CEO Jason Churchill
The company is led by former Venado Oil & Gas VP-Operations Jason Churchill. Churchill also served as operations manager for XTO Energy in the Barnett shale and on U.S. Development and Deepwater Exploration teams with ExxonMobil (ticker: XOM).
