Sabinal Energy Jumps into Permian
Sabinal gets 66,500 acres in northern Permian from Chevron
Privately-held Sabinal Energy announced its first acquisition on Tuesday, diving into the Permian Basin.
Sabinal will purchase about 66,5000 net acres in the Central Basin Platform and the Northern Shelf from Chevron (ticker: CVX). Sabinal reports that the acquired assets are currently producing about 7,500 BOEPD and are located in Hockley, Terry and Gaines Counties. Pricing details were not released.
Founded in 2016, Sabinal received a $300 million equity commitment from Kayne Private Energy Income Fund. The company’s website reports that it “targets mature fields with established and predictable production profiles in geographic areas with consolidation opportunities.”
Sabinal CEO Bret Jameson commented on the acquisition, “The Central Basin Platform is an area that we know well and one that we believe offers considerable upside potential through focused management. We are happy to welcome aboard many of the field employees from Chevron that will provide continuity which will be extremely helpful as we grow our position both organically and through future acquisitions in the area.”
This acquisition only shaves a small portion off of Chevron’s Permian acreage, as the company owns about 1.5 million acres spread over Texas and New Mexico.
Originally published at Oil & Gas 360.