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Matador, HEYCO conclude joint ventures

Matador Resources Co. announces closing of Delaware Basin joint ventures
Matador, HEYCO conclude joint ventures

Matador Resources Co. announced that on 5 June 2015 it completed the previously announced joint ventures with certain affiliates of HEYCO Energy Group, the former parent company of Harvey E. Yates Co., before HEYCO’s merger with a wholly-owned subsidiary of Matador in February 2015.

The HEYCO affiliates contributed certain interests primarily in the same properties held by HEYCO, resulting in Matador acquiring additional working interests in properties acquired by it in the HEYCO merger. Pursuant to the terms of the transaction, the HEYCO affiliates contributed an aggregate of 1899.6 net acres to two newly-formed entities in exchange for a 50% interest in each entity. Matador has agreed to contribute an aggregate of US$14.2 million in exchange for the other 50% interest in both entities. Matador’s contribution will be used to fund future capital expenditures associated with the interests being acquired as well as to fund other non-operated opportunities.

With the addition of these interests, the total acreage acquired in Lea and Eddy counties, New Mexico in the HEYCO merger and from the HEYCO affiliates is approximately 59,100 gross (19,100 net) acres. Matador also announced that it recently acquired an additional 2610 gross (2210 net) acres in Lea and Eddy Counties, New Mexico in unrelated transactions. Following these acquisitions, Matador’s acreage position in the Permian Basin in Southeast New Mexico and West Texas increased to approximately 155,500 gross (88,535 net) acres as of 8 June, 2015.

Image: property interests in New Mexico and West Texas/Matador Resources Co.

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