Diamondback in US shale splash

Diamondback Energy is adding more acres in the US onshore Midland basin after it agreed to buy assets from a number of unidentified players.

The US company looks to have its eye on drilling hundreds of new horizontal wells on the acreage after agreeing deals totaling $538 million.

Diamondback is getting 13,136 net acres, primarily in Midland and western Glasscock counties. The deals will push Diamondback's position in the basin to more than 85,000 net acres.

Net production at the to-be-acquired assets is currently about 2173 barrels of oil equivalent per day from 131 gross production wells.

Diamondback has estimated net proven reserves to be about 5.2 million boe.

Some 396 gross (256 net) identified potential horizontal drilling locations have been identified. With 88% of the acreage being bought being operated, Diamondback looks set for a lengthy drilling campaign.

Of the 13,136 net acres being acquired, 6814 are in Glasscock County, 4773 are in Midland County, 1402 are in Regan County and 147 are in Upton County.

The company believes the acreage is prospective for Wolfcamp A, Wolfcamp B, Wolfcamp D, Lower Spraberry, Middle Spraberry and Clearfork formations.

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