Moss Creek Resources Holdings Inc., Houston, a wholly owned subsidiary of Surge Energy US Holdings Co., has acquired leasehold interest and wells from Apache Corp. in Howard County, Tex. for an aggregate purchase price of $37.5 million.
The acquired assets include some 4,000 net leasehold acres (100% held-by-production) adjacent to existing leasehold position in Howard County, about 800 net boe/d of production, and 14 net drilling locations primarily through increased lateral lengths and working interests. The deal includes saltwater disposal infrastructure and about 960 surface acres.
Fourth-quarter net production from Surge’s Moss Creek assets was 42,000 boe/d with about 455 net wells online, according to the company website. The company’s horizontal development program is targeting Wolfcamp A, Wolfcamp B, Middle Spraberry, and Lower Spraberry. Assets include 52,000 net mineral acres in Borden County and 53,000 net mineral acres in Howard County with a 78% average working interest.