MARATHON OIL: $700 MILLION NORTHERN DELAWARE ACQUISITION FROM BLACK MOUNTAIN
Marathon Oil Corporation announced the signing of a definitive agreement to acquire approximately 21,000 net surface acres largely in the Permian’s Northern Delaware basin of New Mexico from Black Mountain Oil & Gas and other private sellers for $700 million in cash, excluding closing adjustments.
Marathon Oil President and CEO Lee Tillman said that the 21,000 acre bolt-on in the Northern Delaware is an excellent fit with the basin entry acquisition we announced earlier this month. The combined deals provide us more than 90,000 acres in the Permian, over 70,000 of which is concentrated in the Northern Delaware.
Black Mountain Acreage Highlights:
– Up to 10 target benches within approximately 5,000 feet of stacked pay; base case assumes up to 6 target benches
– Approximately 21,000 net acres with 20,000 net acres in the Northern Delaware basin; primary targets in world-class Wolfcamp and Bone Spring; roughly 400 boed of current production
– Approximately 230 million BOE of risked resource with 440 gross Company operated locations
– Approximately 550 million BOE of total resource potential with 950 total gross Company operated locations
– High quality Northern Delaware inventory produces greater than 90% before-tax IRRs at $55 WTI flat and competes for capital allocation at top of Marathon Oil’s portfolio
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