Another pure play Permian Basin company is born.

Clayton Williams Energy Inc. (NYSE: CWEI) said Oct. 24 that it will sell its oily East Central Texas Giddings asset to an undisclosed party for $400 million.

The transaction will free up capital for the company’s Delaware Basin holdings in Reeves and Ward counties in Texas. Some of the proceeds will also be used to pay debt.

The Giddings Field produces about 3,900 barrels of oil equivalent per day (boe/d), 80% of which is oil. The deal will lop off about one-third of the company’s second-quarter 2016 production; Giddings’ proved reserves were 9.7 MMboe as of Sept. 30. The company has about 160,000 net acres in the field.

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