The purchase of Permian Basin acreage from Occidental Petroleum is Colgate Energy’s second acquisition in the region this month so far putting the company in a truly differentiated position, Co-CEO James Walter says.
The acquisition will create one of the largest private companies in the Permian Basin, with around 57,000 net acres, roughly 45,000 boe/d and 4 rigs running as of June 1, 2021.
MIDLAND, Texas (BUSINESS WIRE) Jun 2, 2021
Colgate Energy Partners III, LLC (the âCompanyâ or âColgateâ) announced today that it has entered into a definitive agreement under which Colgate will acquire a majority of the assets owned by Luxe Energy LLC (âLuxeâ) in an all-stock transaction. Luxe will continue to own and manage certain assets including a portion of the non-operated leasehold interests that are operated by MDC Reeves Energy, LLC and its affiliates. Closing occurred simultaneously with signing of a definitive agreement on June 1, 2021.
Pro Forma Acreage Map (TX Zoom-In) (Graphic: Business Wire)
Luxe Highlights
Current average net daily production of ~17,000 Boepd
In 1901, Anthony Lucas struck black gold on Spindletop Hill in Beaumont. The massive gusher, which produced 100,000 barrels of oil that day, instantly made Texas the epicenter of American energy. Since then, oil’s allure has drawn hundreds of thousands of workers to the state, transforming Houston and West Texas’ Permian Basin into global energy hubs in the process.
Naturally, Austin, with its progressive support of green initiatives, is the last Texas town you’d associate with fossil fuels. Whether it’s new resident Elon Musk’s potential to transform the state with a giant battery connected to our energy grid or the city’s rapid transition from gas guzzlers to electric vehicles (EVs), Austin appears increasingly untethered from the state’s oil-rich days of yesteryear.