HOUSTON, TX / ACCESSWIRE / September 28, 2023 / Scorpion Oil & Gas, LLC ('Scorpion' or the 'Company') today announced the closing of a major acquisition in the Permian Basin from an undisclosed leading independent that will more than double the company's oil and gas production overnight and provides a highly attractive platform for future investments across the basin.
Entry into the Permian Basin. The deal provides an entry point for Scorpion into the prolific New Mexico side of the Permian Basin with a footprint spanning nearly 6,000 gross acres in Lea County.
Legacy, Oil-Weighted Production & Reserves. The assets consist of both vertical and horizontal wells dating back to the 1950's with a very attractive, shallow decline. The Company is acquiring approximately 400 Boepd of production across acreage that is largely HBP with nearly 100% working interest, 85% oil production and 1.0 MMBoe of proved reserves.
Vertical & Horizontal Development Upside. Given Scorpion's prior focus on acquiring legacy PDP wells, this acquisition provides the next step in the Company's evolution by creating a pathway to drilling. The Company has significant upside potential across the acreage from currently producing zones in addition to highly attractive upside in shallower zones.
'This transaction is monumental for Scorpion,' said Nat J. Raggette, Founder and Chief Executive Officer. 'We are beyond thrilled to have an opportunity to acquire assets in Lea County and we look forward to partnering with the New Mexico OCD and other operators in the area to grow our position as aggressively as we have grown in the past. We are now open for business in the Permian Basin. I would also like to welcome Mike Loudermilk, Vice President of Operations, Joe Holsen, Vice President of Reservoir Engineering and Cole Reynolds, Senior Geologist to the team. With an acquisition of this size and scale, we believe it is the right time to expand the expertise of the Scorpion team. Mike, Joe, and Cole, combined, bring more than 80 years of experience to the team and I couldn't be more excited about the future of our Company.'
Scorpion funded the acquisition with borrowings under its existing senior credit facility with Modern Bank N.A.'s Energy Lending Group in Dallas, TX. Biggs, Ingram & Solop, PLLC served as legal advisor to Scorpion on the transaction.
Scorpion Oil & Gas, LLC is a privately held energy company founded in 2018 with headquarters in Stafford, TX. Scorpion's business strategy is focused on the acquisition, exploration and development of crude oil and natural gas properties in the Permian Basin of New Mexico and West Texas along with legacy production on the Gulf Coast.
Additional information about Scorpion can be found on its website at www.scorpionog.com
SOURCE: Scorpion Oil & Gas, LLC
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