MIDLAND, Texas, Feb. 20, 2014 (GLOBE NEWSWIRE) -- Diamondback Energy, Inc. (Nasdaq:FANG) ("Diamondback" or the "Company") today announced the Company has entered into a definitive purchase agreement to acquire an additional 1,858 net leasehold acres in Martin County, Texas, representing a 28.8% working interest, for approximately $114.3 million, subject to certain adjustments.
On Tuesday, February 18, 2014, the Company announced that it had entered into definitive purchase agreements to acquire 6,450 gross (2,825 net) acres in Martin County for approximately $174 million and that under the terms of the existing joint operating agreement the Company had made offers to the remaining working interest owners to acquire their interests in the acreage for the same proportionate price. As a result of the additional purchase announced today, Diamondback has now entered into definitive agreements to acquire an aggregate of 4,683 net acres, representing a 72.6% working interest, for an aggregate purchase price of $288.3 million, subject to certain adjustments. During the first two weeks of February 2014, based on information reported by the operator, net production attributable to the acreage the Company now has under contract was approximately 2,155 BOE/d (77% oil), and net proved reserves as of December 31, 2013, based on Diamondback's internal estimates, were approximately 6,937 MBOE, although this reserve estimate remains subject to revision following the closing of the transactions. Diamondback now anticipates operating the acquired acreage following the closing of the acquisitions, which is expected to occur by the end of February 2014. Diamondback intends to finance the acquisitions, subject to market conditions and other factors, with a combination of borrowings under its revolving credit facility and the issuance of equity securities. The acquisitions remain subject to completion of due diligence and the satisfaction of other closing conditions, and there can be no assurance that the transactions will be completed.