Encana Corp. now holds a premier 140,000 net acre spread in the oil-rich Permian basin after successfully acquiring Fort Worth-based Athlon Energy Inc. for $7.1 billion.
The merger adds 32,000 boe/d to Encana’s production. The company has said it will invest a minimum of $1 billion in the Permian to move from four to at least seven horizontal rigs by yearend 2015. The company has identified 5,000 horizontal prospects with recoverable resources estimated at 3 billion boe, it said.
Encana expects the Permian acquisition to contribute to total liquids production, which is projected to reach 250,000 b/d by 2017.
