Chevron acquires Delaware Basin Acreage

Chevron Corporation has announced that its subsidiary, Chevron U.S.A. Inc., has agreed to acquire 246,000 net leasehold acres in the Delaware Basin in New Mexico, a part of the Permian Basin, from Chesapeake Energy Corporation. The acquisition augments prominent position in liquids-rich Permian Basin.
“This acquisition in a premier emerging play in the Permian Basin grows our significant leasehold position there,” said George Kirkland, vice chairman, Chevron Corporation. “These early-in-life, liquids-rich unconventional assets have the potential to be significant future contributors to Chevron’s robust North American operations.”
Chevron already holds approximately 700,000 net acres in the Delaware Basin, which contains several oil and wet gas plays stacked together within several thousand feet of hydrocarbon-bearing rock. The plays include the Avalon Shale and the Bone Spring Sands.
“This investment gives us significant exposure to stacked Delaware Basin plays where we already enjoy a substantial position,” said Gary Luquette, president of Chevron North America Exploration and Production Company. “It complements our existing Permian Basin operations and provides us access to additional people and resources to execute our growth strategy there.”
The acquired acreage has a current net production of 7,000 barrels of oil equivalent per day, with the potential to increase substantially over the next few years. It will become part of Chevron’s operated and non-operated existing Delaware Basin activities.
Chevron is one of the world’s leading integrated energy companies, with subsidiaries that conduct business worldwide. Chevron is based in San Ramon, California.
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