Vital Energy, Inc. has acquired assets in the Midland Basin, part of the greater Permian basin, from Driftwood Energy Operating in exchange for 1,578,948 shares of Vital common stock and $127.6 million of cash.
Currently, oil production in this area of the Permian basin area sits at roughly 5,500 boepd. The acquisition includes rougjly 15,500 acres in Upton and Reagan counties in the Midland basin. This agreement extends Vital Energy’s oil-weighted inventory life by adding roughly 30 operated horizontal location in the Woldcamp B. This includes four drilled, yet un completed locations.
“This purchase strengthens Vital by expanding our footprint into Upton County, adding high-return inventory and a new development area in the Midland basin,” stated Jason Pigott, President and CEO. “We plan to develop these assets over the next two to three years without increasing our current activity levels, highlighting our commitment to maintaining capital discipline and maximizing Free Cash Flow generation.”