PDC Energy Closes Core Delaware Basin Acquisition

PDC Energy Closes Core Delaware Basin Acquisition

PDC Energy, Inc., has announced that the company closed the previously announced Delaware basin acquisition.

President and ceo, bart Brookman, said, “This acquisition provides us a deep inventory of horizontal drilling locations that complements our existing core Wattenberg position. we believe we presently have over 700 horizontal locations on the Delaware acreage within the Wolfcamp A, B and C zones. With potential upside through Wolfcamp downspacing, as well as further potential locations within the Avalon and various Bone Spring horizons, we estimate we tend to could have decades of future drilling locations. Our primary plan within the Delaware for 2017 is to focus on holding acreage with 2 drilling rigs initially and a third rig early within the fourth quarter.

“We are terribly excited with the progress being created in building out our Delaware operations team, which includes a number of employees from the seller. Wells completed earlier this year are showing strong production that bolsters our confidence in recent completion enhancements.”

Total capital pay within the Delaware in 2017 is expected to be approximately $235 million, of that approximately $185 million is allocated to spud 28 wells and turn-in-line 19 wells. PDC plans to spend approximately $35 million for leasing, seismic and technical studies with an additional $15 million for midstream and infrastructure related projects. Completions are proceeding on 2 wells that were spud in september and october, one of which can be turned-in-line before year-end.