A Woodlands, Texas-based oil and gas company has made its first reported acquisition and the young company is taking root in the Permian Basin.
Sabinal Energy – which formed last year – has acquired more than 66,000 acres of land in the Permian Basin from a big player in the oil industry: Chevron.
The privately held company estimates the acquired land could produce an estimated 7,500 barrels of oil per day. Sabinal CEO Bret Jameson said in a press release the acreage represents the company’s first land purchase.
“We are excited to announce our first acquisition since forming Sabinal last summer. The Central Basin Platform is an area that we know well and one that we believe offers considerable upside potential through focused management.”
Although Chevron placed the Permian Basin atop its 2017 development list, the acreage sold to Sabinal isn’t considered core and outside the company’s focus.
Sabinal will retain part of the Chevron field employees that worked in the area.