Noble Energy has purchased rights to drill in 7,200 acres in West Texas’ Delaware Basin for $300 million, the company announced this week. The new land fills holes in Noble’s existing acreage, allowing the company to drill longer horizontal wells.
Noble, based in Houston, said the properties include current production of about 2,400 barrels of oil and gas per day, expanding the company’s total Delaware position by about 20 percent to 47,200 net acres and 12,000 barrels of oil equivalent per day.
Funding for the purchase came from cash on hand. The company did not say from whom it bought the rights.
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Gary Willingham, Noble’s executive vice president of operations, said the additions represent “a disciplined approach” to growth.
The company recently added a third drilling rig to the basin and is “aggressively moving forward with development,” Willingham said.
Noble landed 46,000 acres in the Delaware when it bought Rosetta Resources in 2015.
The Delaware is the western lobe of the Permian Basin and stretches into New Mexico.