Matador Resources Company (MTDR)

[56Chevy]

Matador Resources Company Announces Closing of Delaware Basin Combination

Date : 03/02/2015 @ 6:00AM
Source : Business Wire
Stock : Matador Resources Company (MTDR)
Quote : $22.7092 -0.2308 (-1.01%) @ 3:09PM

DALLAS, Mar 02, 2015 (BUSINESS WIRE) -- Matador Resources Company MTDR, -0.87% (“Matador” or the “Company”), an independent energy company engaged in the exploration, development, production and acquisition of oil and natural gas resources, with an emphasis on oil and natural gas shale and other unconventional plays and with a current focus on its Eagle Ford operations in South Texas and its Permian Basin operations in Southeast New Mexico and West Texas, today announced on Friday, February 27, 2015 it completed the previously announced combination of its Delaware Basin assets with Harvey E. Yates Company (“HEYCO”), a subsidiary of HEYCO Energy Group, Inc. As a result of the transaction, Matador will assume operatorship of all of HEYCO’s operated properties in the Northern Delaware Basin.

Key attributes of HEYCO’s properties include the following:

• Approximately 58,600 gross (18,200 net) acres located in Lea and Eddy Counties, New Mexico.
• Approximately one-third of the acreage is operated, one-third is non-operated and operations on the remaining one-third will be pursued by Matador under various operating, farm-in and other agreements.
• Essentially all of the acreage is held by production from existing wells and production units with high net revenue interests greater than 75%.
• Average net daily production during the fourth quarter of 2014 of approximately 530 BOE per day (approximately 70% oil), including production from the recently drilled CTA State Com #3H and #4H wells.
• Net proved developed producing (“PDP”) oil and natural gas reserves of approximately 1.3 million BOE (approximately 60% oil) as of September 1, 2014, based on an independent reserves analysis prepared by Netherland, Sewell & Associates, Inc., excluding any contributions from the CTA State Com #3H and #4H wells. Notably, no proved developed non-producing (“PDNP”) nor proved undeveloped (“PUD”) reserves have been assigned to these properties.

The HEYCO assets strategically link Matador’s existing acreage in its Ranger and Rustler Breaks prospect areas. The acquired acreage increases Matador’s total acreage position in the Permian Basin at March 2, 2015 to approximately 152,400 gross (85,400 net) acres, providing Matador with an increased operational footprint throughout the northern Delaware Basin.

[....]

http://www.marketwatch.com/story/matador-resources-company-announces-closing-of-delaware-basin-combination-2015-03-02

*Matador Resources holds properties outside of the Permian Basin which have proven to be profitable but none beat the "breakeven" price per barrel wells in the Permian Delaware contain.

North American Tight Oil Breakeven Prices ($/Bbl)

Utica Shale -------- $68
Anadarko Tight Oil - $64
Alberta Bakken-------$55
Niobrara Shale ------$51
Cardium Shale -------$51
Permian Midland -----$50
Eagle Ford Shale ----$50
Bakken Shale --------$44
Permian Delaware-----$44

http://www.bing.com/images/search?q=permian+delaware+basin&qpvt=permian+delaware+basin&qpvt=permian+delaware+basin&FORM=IGRE#view=detail&id=3DB2C4CA2151562319998F92DE97CD9D7E4C479C&selectedIndex=30