Luxe Energy LLC said July 13 that it agreed to sell its Southern Delaware Basin to an undisclosed third party for $560 million. The assets are primarily operated leasehold interests, the majority of which are located along the Pecos River in Reeves and Ward counties, Texas. Luxe Energy is backed by Natural Gas Partners.
July 13, 2016 19:05 ET
Luxe Energy Announces Execution of Definitive Agreement to Sell Southern Delaware Basin Assets
AUSTIN, TX–(Marketwired – July 13, 2016) – Luxe Energy LLC (“Luxe Energy” or the “Company”) today announced it has entered into a definitive agreement with an undisclosed third party buyer for the purchase of Luxe’s Southern Delaware Basin leasehold interests and related assets for an aggregate purchase price of $560 million, subject to certain closing adjustments. Luxe’s assets are primarily operated leasehold interests, the majority of which are located along the Pecos River in Reeves and Ward counties, Texas.
• 19,180 net surface acres primarily in Reeves and Ward counties
• Approximately 1,000 boe/d of current net production
• Contiguous acreage enables long lateral drilling locations resulting in premium well economics
• Salt water disposal infrastructure and additional assets included in the transaction
“I am proud of the accomplishments of the entire Luxe organization. Our team successfully built a contiguous, world-class leasehold position in the premier Southern Delaware Basin, and subsequently entered into a definitive agreement for the sale of our assets,” stated A. Lance Langford, Chief Executive Officer and President of Luxe Energy. “We are very appreciative of the support of our equity sponsor, Natural Gas Partners, and look forward to working together to identify, evaluate, and execute on additional acquisition opportunities.”
The transaction is expected to close in September 2016; however, the transaction remains subject to completion of due diligence and satisfaction of other closing conditions, and there can be no assurance that the transaction will be completed as planned or at all.
About Luxe Energy
Luxe Energy is an oil and gas company based in Austin, Texas. In May 2015, the Company announced the formation of the Company with $500 million of funding commitments from NGP Natural Resources XI, L.P., and management.
The Company’s strategy is to acquire unconventional oil properties in the Permian Basin and other liquids rich basins throughout the United States, and to apply innovative technologies to drive operational excellence.
Co-Founders Lance Langford and Jeff Larson, have worked together for over 25 years at Burlington Resources and most recently as executives at Statoil. Prior to joining Statoil, Lance and Jeff served as executives for Brigham Exploration (“Brigham”), responsible for Brigham’s entry into the Bakken Unconventional Play. Lance and Jeff continued to manage Brigham’s significant growth in the play through the merger with Statoil in 2011, until leaving to form Luxe Energy.
For more information, please visit www.luxeenergy.com.
About Natural Gas Partners
Founded in 1988, Natural Gas Partners (“NGP”) is a family of private equity investment funds, with approximately $16.5 billion of cumulative equity commitments, organized to make investments in the natural resources sector. NGP is part of the investment platform of NGP Energy Capital Management, a premier investment franchise in the natural resources industry. In addition to NGP, NGP Energy Capital Management’s investment platform includes NGP Energy Technology Partners, L.P. www.ngpenergycapital.com.