Permian Resources Acquires New Acreage in New Mexico

Permian Resources announced last week that they had completed two transactions to acquire 11,500 net leasehold acres and 4,000 net royalty acres in Eddy County, New Mexico. These areas are adjacent to the legacy Earthstone position they acquired through last year’s merger. The acquired properties are mostly undeveloped acreage, and Permian Resources has stated that it plans to begin developing it later this year.

Map of Permian Resources and legacy Earthstone acreage in Eddy County, NM. Right map includes aquired acreage in yellow. Source: Permian Resources

In addition, the company completed an acreage trade, swapping 2,000 net acres of non-operated and lower working interest acreage for 2,000 net acres in Lea County, New Mexico. It also plans to begin developing the new acreage in Lea County this year. Both of these moves will refocus the company on production in the Permian after it sold its legacy Earthstone assets in the Eagle Ford shale late last year. Permian natural gas production has been back above 18 Bcf/d since January 26, and producer optimism seems likely to keep gas and oil production growing in coming years.