QEP Resources Inc., Denver, said its wholly owned subsidiary QEP Energy Resources will gain 430 horizontal drilling locations targeting four horizons in the northern Midland basin with property acquisitions in Martin County, Tex., totaling $600 million.
The operator entered a definitive agreement with “individuals and entities” to buy 9,400 net acres 10 miles east of existing QEP operations. The company current holds about 26,000 net acres in the Midland basin, mostly in Martin and adjacent Andrews counties.
About 98% of the acquisition acreage is held by production to the base of the Permian Wolfcamp formation or deeper. Net production is 1,400 boe/d, about 83% crude oil, from 96 vertical wells.
Target formations of the drilling locations to be acquired are Wolfcamp A and B and Permian Middle Spraberry and Spraberry shale.
Terms of the agreement are subject to adjustment to the extent participating sellers are unable to secure joinders from associated property owners by July 13.