Chevron acquires Permian Basin shale acreage

Chevron U.S.A. Inc., has agreed to acquire 246,000 net leasehold acres in the Delaware Basin in New Mexico, a part of the Permian Basin, from Chesapeake Energy Corp.

“This investment gives us significant exposure to stacked Delaware Basin plays where we already enjoy a substantial position,” said Gary Luquette, president of Chevron North America Exploration and Production Company. “It complements our existing Permian Basin operations and provides us access to additional people and resources to execute our growth strategy there.”

Chevron already holds approximately 700,000 net acres in the Delaware Basin, which contains several oil and wet gas plays stacked together within several thousand feet of hydrocarbon-bearing rock. The plays include the Avalon Shale and the Bone Spring Sands.

The acreage included in the agreement has current net production of 7000 boe/d, with the potential to increase substantially over the next few years. The acquired acreage will become part of Chevron’s operated and non-operated existing Delaware Basin activities.

Adapted from press release by Peter Farrell.

Read the article online at: https://www.oilfieldtechnology.com/exploration/13092012/chevron-buys-shale-acreage-in-permian-basin-new-mexico-368/