WildHorse Resource Development Corp. (NYSE: WRD) signed purchase and sale agreements to acquire Eagle Ford Shale assets in Burleson County, Texas, for about $15.6 million, the Houston-based company said Feb. 23.
The acquired assets consist of 10,535 net acres, seven operated (nine nonoperated) producing wells and undeveloped leasehold. Combined production is about 1,200 gross (195 net) barrels of oil equivalent per day.
The implied acquisition cost for the acreage is roughly $812 per acre, said Jay Graham, chairman and CEO of WildHorse.
"This transaction is consistent with our strategy of not only expanding our industry-leading position in East Texas, but also, expanding our acreage at an attractive value. Entry points like this help us achieve what we think are some of the best full cycle economics in any oil play in the country," Graham said in a statement.
WildHorse said the newly acquired properties are immediately contiguous and complementary to its existing East Texas Eagle Ford properties. The acquisition is expected to increase WildHorse's working interest in more than 188 gross locations in the Burleson Main and Burleson North areas.
The multiple sellers were undisclosed. One transaction has closed and the other transactions are expected to close in April.
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