Marathon picks up fresh Permian acreage

HOUSTON, March 21, 2017 – Marathon Oil Corporation will acquire an additional 85 square kilometres of Permian acreage, the Houston-based entity announced on Tuesday, having reached an agreement with Black Mountain Oil & Gas.

The deal, which also includes a number of private sellers, will see Marathon pay out USD 700 million in cash. Ninety-five percent of the bolt-on acreage is in the Northern Delaware basin.

Combined with the USD 1.1-billion purchase of 283 net square kilometres earlier in March, Marathon’s Permian footprint will be expanded to around 365 square kilometres.

The newly added acreage, which has an estimated total resource potential of 550 million boe, currently produces 400 boepd.

“While we expect to pursue additional trades and grassroots leasing, this bolt-on achieves the scale necessary for efficient long-term development in the basin,” company President and CEO Lee Tillman said in comments.

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