Recently formed Austin, TX-based Luxe Energy LLC has acquired undeveloped acreage and producing oil/gas properties in Reeves and Ward Counties, TX, from Endeavor Energy Resources LP and Finley Resources Inc. in separate deals. The acquisitions are Luxe’s first in the Delaware.
Luxe is picking up about 18,000 net acres in the core of the Delaware, a sub-basin of the Permian that is providing attractive returns for some, even in a low-price environment (see Shale Daily,Jan. 8). Acreage is majority owned with “high average working interest,” Luxe said. The contiguous holdings will allow for long laterals, it said. net production is about 1,000 boe/d currently. Midstream infrastructure development opportunities are also available.
“This is our first step, with the support of Natural Gas Partners, to build an inventory of highly meaningful and economic well locations,” said Luxe CEO Lance Langford. “This core ‘deep basin’ acreage provides several thousand feet of overpressured oil column with numerous prospective intervals. The combination of these two positions allow operational efficiencies using best-in-class technologies…Luxe Energy continues to identify, evaluate, and acquire additional growth opportunities.”
Luxe, which is primarily focused on the Permian Basin, last May received $500 million of private equity funding commitments from NGP Natural Resources XI, LP, the most recent Natural Gas Partners private equity fund focused on natural resources and management (see Shale Daily, May 14, 2015).
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