Colgate Energy Continues Permian Expansion with $190 Million New Mexico Bolt-on

The purchase of approximately 22,000 net acres in New Mexico’s Eddy and Lea counties marks the third acquisition made by privately held Colgate Energy in the Permian Basin so far this year.

Colgate Energy Continues Permian Expansion with $190 Million New Mexico Bolt-on

Pro forma for the Nov. 7 deal, Colgate’s position in the Permian Basin will cover roughly 108,000 net acres with estimated current net daily production of 62,000 boe/d. (Source: Hart Energy)

Colgate Energy Partners III LLC entered a definitive agreement with an undisclosed seller on Nov. 7 to purchase approximately 22,000 net acres directly offset Colgate’s existing position in New Mexico’s Eddy and Lea counties for $190 million.

“Given the depth of our current inventory, we have a very high bar for acquisitions and this one was just too good to pass up,” Will Hickey, co-CEO of Colgate, commented in a company release.

The deal marks the third acquisition for privately held Colgate Energy so far this year. Previously, the company completed two acquisitions in the southern Delaware Basin in West Texas—first, with its all-stock acquisition of Luxe Energy followed by a $508 million cash acquisition of acreage in Reeves and Ward counties, Texas, from Occidental Petroleum Corp.

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Emily Patsy

Emily Patsy is the senior managing editor for Hart Energy’s Digital News Group. She's responsible for the daily news flow and also manages the A&D Watch and Energy Pulse weekly newsletters.