QEP Resources Inc. has informed federal regulators that its plans to expand in the Permian Basin by purchasing about 9,400 net acres in West Texas for $600 million will be delayed, with the closing date pushed back by about one month.

In an 8-K filed Sept. 19 with the U.S. Securities and Exchange Commission (SEC), QEP said it had entered into a second amendment with the sellers, which include RK Petroleum Corp. and others. Under the amended deal, the closing date was changed from Sept. 21 to Oct. 19.

The deal was announced in June (see Shale Daily, June 23). In its filing with the SEC, QEP did not indicate a reason for the delay in closing. Two Texas limited liability companies, Blind Juniper Holdings LLC and Richard Schmidt REP LLC, were identified as representatives to the sellers.

The acreage is located in Martin County, TX, and is prospective to the northern Midland sub-basin. It includes more than 430 potential horizontal drilling locations in four target horizons of the Wolfcamp and Spraberry formations. Current net production from 96 vertical wells totaled 1,400 boe/d, of which 83% is crude oil. Net proved reserves based on internal estimates are 76 million boe, with total net recoverable resources of 275 million boe.

In July, during its 2Q2016 presentation, QEP said that under the purchase agreement, the sellers were to obtain executed joinders representing an aggregate allocated value of at least 90% of the $600 million purchase prices, or QEP could terminate the deal. At the time, QEP said joinders representing $595 million, more than 99% of the aggregate total value, had been delivered.

QEP said it plans to fund the purchase with net proceeds from an equity offering completed last June, which raised approximately $413 million, and from cash on hand. The company added that the acreage being purchased is about 10 miles east of its existing operations.