Irving, Texas-based Pioneer Natural Resources Co. has finalized the $435 million dollar deal it made earlier in the year to buy nearly 28,000 Midland Basin core acreage from Oklahoma City-based Devon Energy.
The acreage is located in Martin, Midland, Upton, Reagan, Glasscock, Andrews, Dawson, Gaines and Howard counties in Texas and has a production mix of about 65% oil.
Its current net production is 1,400 barrels of oil equivalent a day. The purchase from Devon was announced in June and adds about 70 Wolfcamp B locations to Pioneer’s Sale Ranch area drilling inventory. The company said the locations have an average lateral length of nearly 9,000 feet.
Pioneer says it will use three horizontal rigs to drill the newly-added Sale Ranch area locations. But the drilling won’t start until the first half of 2017 as title work begins immediately along with permitting processes and facility construction.