Logos Resources II has agreed to acquire the gas assets of Tulsa-based WPX Energy in the San Juan Basin in the US which includes nearly 900 producing wells for an undisclosed price.
The transaction also includes the undeveloped Mancos acreage where Logos will add more than 200 potential horizontal gas drilling locations.
According to Logos, the drilling locations are spread around in 134,000 net acres in Rio Arriba and San Juan counties in New Mexico and La Plata and Archuleta counties in Colorado states with the acreage almost 100% held by production.
Currently, the assets involved in the transaction are producing around 73 million cubic feet equivalent per day.
Logos president Jay Paul McWilliams said: “This acquisition enhances Logos' position as a leading San Juan Basin operator, and the consolidated lease position adds a deep inventory of extended lateral horizontal Mancos gas opportunities to complement our existing position in the Gallup oil window.
“As substantially all acquired acreage is held by production, we will transition the assets into our existing base while further optimizing operating efficiencies prior to deploying additional capital.”
Following the acquisition, Logos will own around 283,000 net acres across the oil, gas and condensate windows of the San Juan Basin while taking its current production to nearly 112 million cubic feet equivalent per day.
ArcLight founder and managing partner Dan Revers said: “We are excited to expand our relationship with the Logos team in the San Juan Basin.
"The company has successfully integrated multiple assets since early 2016 and we believe the acquisition will offer similar operating cost reduction and production optimization opportunities.
“In addition, the undeveloped Mancos acreage position provides a significant resource base capable of substantial productivity improvements with the implementation of leading-edge drilling and completion techniques."
Subject to customary regulatory and other approvals, the anticipation is to be completed by year end.
A portfolio company of ArcLight, Logos is into oil and gas acquisitions and development with focus on acquiring and developing assets in the San Juan Basin. Logos Resources was founded in 2012 through a joint venture between Logos Capital Management and ArcLight Capital Partners.