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It acquired its stake there just 1 year ago with a $4.5 billion all-stock acquisition of smaller rival Parsley Energy. In March of this year, the company also bought into Wyoming’s Powder River basin through a $1.4-billion purchase of 130,000 net acres from Samson Resources II.įor Pioneer, the deal marks a hasty exit from the Delaware Basin.
It eventually lost that title and pared down its Bakken position while trying to expand its footprint close to home in Oklahoma’s SCOOP/STACK, Woodford, and Springer unconventional plays. In 2004, Continental drilled its first multistage horizontal well in the Bakken Shale as it rose to become the largest leaseholder in that oil-rich play.
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Further, Continental is projecting the properties will generate $500 million in annual free cash flow next year if current crude prices hold. This continues today and has directly led us to our new strategic position in the Permian Basin,” Bill Berry, CEO of Continental, said in the announcement.Ībout 75% of the transaction price is represented by the asset’s proved developed producing oil and gas reserves and current production is around 55,000 BOE/D (about 70% oil), the company said in a release. "Continental's foundation has always been built upon a strong geology-led corporate strategy. Earlier this month, the Permian approached pre-pandemic production highs of 4.82 million B/D which is more than 40% of the 11.3 million B/D produced across the US. The acquisition represents Continental’s first footsteps into the powerhouse of US oil production.
The deal will hand Continental a position covering 92,000 contiguous acres in the Delaware Basin, the western half of the wider Permian region, which will be 98% operated by the Oklahoma City-based independent.
Continental Resources announced today that it is buying Permian Basin acreage from Pioneer Natural Resources for $3.5 billion in cash.