Laredo Acquires 4,475 Acres in Glasscock County, Texas

Updated 1 year 9 months ago

Laredo Petroleum Inc. has closed a bolt-on acquisition of 4,475 contiguous net acres in Glasscock County, Texas for USD 65 million, further delivering on the company’s strategy of acquiring properties that can improve capital efficiency and enhance free cash flow generation. The acquisition was funded with Laredo's USD 1.0 billion senior secured credit facility, resulting in outstanding borrowings of USD 245 million at December 6, 2019.

The asset has a current net production of 1,400 boe per day (55% oil) with approximately 45 total gross (35 net) expected locations across the Lower Spraberry, Upper Wolfcamp, and Middle Wolfcamp formations at 1,320 ft spacing, 80% of acreage held by production. The acreage is located in an area of high oil productivity with relevant offset wells indicating first year oil production 37% higher than expectations for legacy Laredo Wolfcamp drilling.

Jason Pigott, Laredo CEO

We are excited to announce another acquisition that delivers on our strategy of shifting our development to oilier, more capital-efficient acreage. This acquisition expands our Glasscock County position further to the west into an area of higher oil productivity than our established acreage position. We expect to incorporate this acreage into our drilling plan to meet HBP obligations in 2020 and 2021 and transition to full development upon completion of the Howard County development plan, extending our runway of higher-value locations to three years.