(WO) — Matador Assets has agreed to amass Permian basin operator Paloma Permian LLC for $1.275 billion in money whereas additionally increasing its place within the rising Woodford play, the place the corporate reported encouraging outcomes from its first exploratory properly in southeast New Mexico.
The acquisition from EnCap Investments portfolio firm Paloma consists of 16,235 internet undeveloped acres in Eddy and Lea counties, N.M., together with producing properties anticipated to common roughly 11,100 boed (57% oil) throughout the third quarter of 2026. The transaction additionally provides an estimated 55 MMboe of proved reserves and greater than 156 internet drilling areas throughout the Bone Spring and Wolfcamp formations. The acquisition is anticipated to shut throughout the fourth quarter.
Individually, Matador has agreed to amass primarily undeveloped acreage from Ridge Runner Assets II, one other EnCap portfolio firm, increasing its footprint within the Woodford formation throughout West Texas and southeast New Mexico. Mixed with prior acquisitions, the deal brings Matador’s Woodford place to roughly 50,000 contiguous internet acres and will increase its whole Delaware basin acreage to roughly 240,000 internet acres.
The acreage growth follows what the corporate described as a profitable validation of the rising Woodford play in New Mexico. Matador’s Rae’s Creek exploratory properly recorded an preliminary 24-hour manufacturing charge of greater than 2,200 boed, with oil accounting for 72% of manufacturing. The corporate stated the properly continues to outperform the typical Woodford properly in Texas by roughly 20% on a 60-day cumulative oil manufacturing foundation, supporting the industrial potential of the formation on this portion of the Delaware basin.
Matador stated the Ridge Runner acquisition provides greater than 150 operated Woodford drilling areas and creates alternatives for longer laterals, bigger growth applications and improved drilling and completion efficiencies. The corporate expects these efficiencies might cut back properly prices by 30% to 40% over the subsequent 12 to 18 months.
“Matador is worked up to announce the growth of our Delaware basin asset base with these property from Paloma,” stated Joseph Wm. Foran, founder, chairman and CEO of Matador. He added that the corporate additionally views the Rae’s Creek outcomes as proof of the industrial viability of the Woodford formation in southeast New Mexico and expects the expanded acreage place to assist future growth.
The transactions proceed Matador’s technique of increasing its operated place within the core Delaware basin whereas growing publicity to rising unconventional alternatives within the Woodford formation.