SYDNEY, AUSTRALIA: Black Mountain Energy has entered into an agreement with Earthstone Energy Inc to acquire 100% of Earthstone’s interest in an 8 operating wells and leases (known as the “Half Moon Prospect”) in the Permian Basin in New Mexico, USA.
The Half Moon Prospect is located in the northwestern corner of the Delaware Basin adjacent to the NW shelf. The Half Moon Prospect has proven petroleum systems and the acquisition wells have produced nearly 3 mmboe from the lease.
The acquisition strategically diversifies Black Mountain’s business model and provides approximately 465 mcfepd (77 boepd) of net non-operated production from 8 PDP vertical wells located over 3,200 gross (1,268 net non-operated acres).
Potential hydrocarbons are believed to exist in multiple formations on the acreage and will be evaluated using geologic and engineering analogues.
With the potential to grow and further unlock value, the company is actively working to expand the project’s footprint. The company believes there may be further value to unlock via horizontal drilling.
The acquisition will generate a steady monthly production revenue for the Company while it continues to develop its flagship Valhalla natural gas project in the Canning Basin, Australia.
Executive Chairman Rhett Bennett commented “The assets provide the Company with an ability to diversify and generate immediate revenue through acquiring a portfolio of producing wells as we continue to develop the Valhalla project. The assets provide another operating nexus for us to drive value creation for shareholders, through existing production and possible future drilling”.