USA: FireBird Energy acquires Midland Basin assets from Chevron
The company described the site as a “low operating cost, oil-weighted high-margin asset” that hast the potential to synergize with its current portfolio.
FireBird Energy LLC has announced that it has completed the acquisition of operated assets located in the Midland Basin from Chevron U.S.A. Inc. and Chevron Midcontinent L.P. The negotiation includes approximately 21,000 net acres in Ector, Midland, Crane and Upton Counties, and was closed on December 30, 2021 with an effective date of December 1, 2021.
"This transaction will be our second major acquisition as we continue to advance our consolidation strategy and enhance our Western Midland Basin footprint with additional scale. The acquisition of these high-margin, oil-weighted assets is a complementary addition to our acreage footprint, production, and cash flow base,” stated Travis F. Thompson, CEO of FireBird.
With this acquisition, the company will see benefits in their performance development plant for future operations. It’s low operating cost alongside its oil-weighted high-margin will benefit in synchronization with FireBird's existing assets.
“We expect to benefit from additional operating synergies when production operations are combined with our base asset," added Thompson. After the transaction, not only the company will produce more than 72,000 gross acres and 11,500 barrels of oil equivalent day but will also convert 60+ 1-mile locations to 2-mile locations and have significant development upside in four known benches.
