PDC Energy enters Delaware basin with $1.5-billion acquisition

DENVER, Colorado -- PDC Energy has entered into definitive agreements to acquire two privately held companies managed by Kimmeridge Energy Management Company for approximately $1.5 billion. The privately negotiated transaction includes approximately 57,000 net acres in Reeves and Culberson Counties, Texas, with an average working interest of approximately 93%.

Current net production is approximately 7,000 boed from 21 horizontal wells, with two additional wells in the completion and flowback phase. The transaction is expected to close in the fourth quarter.

President and CEO Bart Brookman said, "Through a methodical approach, we were able to execute our stated acquisition strategy and add an extensive inventory of highly-economic drilling locations that complement our already strong portfolio. I am extremely thrilled with the work of our team and am very excited to begin applying our operating expertise to this premier Delaware basin acreage position."

Lance Lauck, executive V.P., Corporate Development and Strategy, said, "Adding this Delaware position to our Core Wattenberg acreage gives us more than one billion net boe of liquid-rich reserve potential in two of the top-tier U.S. onshore basins. We are very well positioned to continue providing strong returns and delivering long-term shareholder value."