Chevron U.S.A. Inc. has sold 66,500 net acres in West Texas to Sabinal Energy LLC and Kayne Private Energy Income Fund LP.

The property, now producing 7,500 boe/d, is in Hockley, Terry and Gaines counties in the Permian Basin, within the Central Basin Platform and Northern Shelf.

“We are excited to announce our first acquisition since forming Sabinal last summer,” said CEO Bret Jameson. “The Central Basin Platform is an area that we know well and one that we believe offers considerable upside potential through focused management.”

Many of Chevron’s field employees are joining Sabinal to “provide continuity,” which Jameson said would be “extremely helpful as we grow our position both organically and through future acquisitions in the area.”

Kayne Managing Partner Danny Weingeist said the assets were “a tremendous fit, not only for Sabinal, but also for our fund’s strategy.”

Chevron, a legacy Permian player with an estimated two million acres in West Texas and New Mexico, put the basin at the top of its development list for 2017. However, not all of the acres is considered core, and the land sold to Sabinal is outside its focus.

At the end of June, Chevron was running 13 rigs in the Permian, with a rig scheduled to be added to the West Texas region every eight to 10 weeks, and 20 expected to be running by the end of this year.

Chevron management has said it plans to monetize 150,000-200,000 acres in the Permian, and with the Sabinal deal, it has executed about 80,000 acres of transactions to date this year.

Founded in 2016 with a $300 million commitment from the Kayne Private Energy Income Fund LP, Sabinal is a privately held exploration and production company based in The Woodlands, north of Houston. Jameson, who has led the company since its inception, is former COO of Lewis Energy Group, a long-time Permian operator. He also is a former executive with Devon Energy Corp.The Kayne fund, part of Kayne Anderson Capital Advisors LP’s energy private equity practice, was formed in mid-2014 to develop producing oil and gas assets in North America.