Another Houston company is buying into the Permian Basin’s popular western lobe, the Delaware.
Houston American Energy Corp. announced on Wednesday that it is buying a 25 percent working interest in about 800 acres in Reeves County owned by Founders Oil & Gas.
Houston American is paying $1.1 million, or about $5,500 an acre.
Founders, a Midland company, will operate the acreage. They expect to drill their first well there by July 1.
“After evaluating numerous opportunities over the past year, we are excited to have identified and agreed to participate in this Delaware Basin prospect,” said Houston American chief executive John Boylan.
The transaction is expected to close in mid-January. Drilling will target the Wolfcamp shale and Bone Springs formations.