Jan 10 Oil and gas producer Parsley Energy Inc
said on Tuesday it would buy acreage in the Permian Basin
for about $607 million as the company increases its presence in
the oil-rich region.
Parsley Energy's shares were down 4 percent at $35.1 in
extended trading after the company announced a share sale plan
to fund the acquisition.
The company said the acquisitions, which include undeveloped
acreage and oil and gas producing properties, are located in the
Midland and Southern Delaware Basins near its existing
The Austin, Texas-based company said the acquisitions
included 23,000 net leasehold acres and estimated current net
production of about 2,300 barrels of oil equivalent per day
Parsley Energy said it expected the transactions to close on
or before Feb. 27.
The company also set its capital budget to be between $750
million-$900 million for 2017, 60 percent of which it intends to
use for development in the Midland Basin. The company's 2016
capital budget is expected to be between $460 million-$510
Parsley Energy also estimated average 2017 net production
to be about 57,000-63,000 boe/d, a near 60 percent growth from
The company said it had commenced an underwritten equity
offering of 20 million Class A shares.
(Reporting by Vishaka George in Bengaluru; Editing by Sriraj