More property in west Texas is exchanging hands among energy companies as Denver-based SM Energy announced this week its purchase of 46,750 net acres in the Midland Basin.
The company said the $980 million purchase includes nearly 4,900 BOEPD of production, two new wells coming online this month and 6 MMBOE of PDP reserves from Rock Oil Holdings LLC.
SM Energy has capital expenditure plans for $705 million in 2016 and 90 percent will be split evenly between the Eagle Ford, Permian and Bakken/Three Forks assets.
The company also announced an offering of senior convertible notes consisting of 15,000,000 shares of common stock with an option for underwriters to buy up to another 2,250,000 shares.