Texas, New Mexico shale deals continue hot pace

By Luke Geiver | May 16, 2017

Acquisition and divestiture activity in the shale plays of Texas and New Mexico remained strong in early May. And, for multiple entities that sold off shale assets, the allure of the Permian already has them eyeing a return to the play.

This week, private oil and gas firm CP Exploration sold 2,200 net acres in the core of the southern Delaware Basin located in Reeves County, Texas, for $160 million. Resolute Energy Corp. purchased the assets from CPX. The Dallas-based entity first began developing some of the assets in 2015. Tom Powell, president and CEO of CPX, said the deal was beneficial for all parties and that his team isn’t done in the Permian. “We look forward to continuing to utilize our acquisition and drilling expertise to roll out CP Exploration III, and again concentrate in the Permian Basin, focused on drill-to-earn and joint venture partnerships with major independents.”

Peregrine Petroleum Partners Ltd., a multi-basin operator, has returned to the Permian after existing the play in November 2016. The company closed on a joint venture to develop assets in the southern Permian Basin. The company has previously sold its Midland Basin assets to Concho Resources.

Chisholm Energy Holdings LLC, a start-up oil and gas company with a $500 million line of equity from Warburg Pincus, is entering the New Mexico portion of the Delaware Basin in the company’s first move into shale. The Fort Worth-based firm is led by Mark Whitley, a former adviser to Warburg and a one-time Senior Vice President for Range Resources Corp. At Range, Whitley was able to assemble more than 100,000 acres in the Barnett shale and the Marcellus shale.

“We are excited to be building a new enterprise focused on the Delaware Basin of New Mexico, where we continue to see many untapped and compelling opportunities,” Whitley said.

In the Eagle Ford, Wildhorse Resource Development Co. has become the second largest operator in the entire south Texas play. For $625 million, the company acquired roughly 111,000 net acres and producing assets from Anadarko Petroleum Corp. Jay Graham, CEO of Wildhorse, said the company was able to add to its Eagle Ford position at prices that were extremely attractive. The purchase includes 36 wells immediately adjacent to the operator’s current position. “With the new acquisition, WRD can further optimize pad location and development planning with fewer limitations. As a result,” Graham said, “this transaction immediately adds value to our existing program.”