Matador expands its assets in the Delaware Basin
American company Matador Resources has finalized deals to acquire oil and gas fields in the Delaware Basin, expanding its land holdings to 240,000 acres. The company expects proven reserves to increase by 55 million barrels of oil equivalent and anticipates lower drilling costs in the newly acquired regions.
Petrus
American company Matador Resources has announced the signing of two agreements to acquire acreage in the Delaware Basin, including a $1.28 billion deal with EnCap Investments.
Under these agreements, Matador will acquire 16,235 undeveloped acres of Paloma Permian assets in southeastern New Mexico, as well as undeveloped Ridge Runner acreage in the Woodford field, located in western Texas and southeastern New Mexico.
Upon completion of these transactions, Matador’s total land holdings in the Delaware Basin will reach approximately 240,000 net acres.
Production from the Paloma assets is estimated at around 11,100 barrels of oil equivalent per day in the third quarter. Both deals are expected to increase the company’s proven oil and natural gas reserves by 55 million barrels of oil equivalent.
The company reported that the potential of the Woodford field assets has been confirmed by the results of the first exploratory well, Rae’s Creek, in New Mexico, where initial production rates exceeded 2,200 barrels of oil equivalent per day.
Matador plans to implement efficient solutions in the new areas to reduce drilling costs by 30–40% over the next 12–18 months, similar to improvements achieved at the previously acquired Stateline and Rodney Robinson assets in 2018.
The Paloma acquisition is expected to be completed in the fourth quarter of 2026.