March 22, 2017 Comments Off on Marathon Oil Returns to Permian Basin, Spends $700M Views: 327 Texas - Other, Texas News

Marathon Oil Returns to Permian Basin, Spends $700M

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Marathon Oil Corp., headquartered in Houston, acquired 21,000 net surface acres in the Permian Basin’s northern Delaware Basin (New Mexico) from Fort Worth-based Black Mountain Oil & Gas LLC, and other private sellers. Marathon paid out $700 million in an all-cash deal, which is expected to close in Q2 2017.

The buy comes on the heels of a $1.1-billion acquisition that Marathon paid for 70,000 acres in the Permian in early March 2017. “The combined deals provide us more than 90,000 acres in the Permian, over 70,000 of which is concentrated in the northern Delaware,” Marathon Oil’s Lee Tillman stated.

Companies have been buying up acreage in the Permian Basin over the last several months, with new rigs being added almost weekly.

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