Ameredev II, backed by a $400 million private equity commitment from EnCap, is currently in the process of building its core acreage in the northern Delaware basin in Lea County, New Mexico. The acreage itself rests along the state line.
Ameredev is targeting to initiate production in its acreage in late 2017-early 2018, when it starts drilling delineation wells.
In a phone interview with Oil & Gas 360©, Parker Reese, CEO of Ameredev II, indicated that one of the benefits of its Delaware acreage was that it allowed the company’s operations to remain “economic at any price [the industry] might expect to see.”
Ameredev is no newcomer to Permian development. Ameredev I—the previous entity—held approximately 16,000 net acres in Ward County. The company parted with its Ward County acreage in a sale to Callon Petroleum Company, but retained its experience in developing similar acreage.
Contiguous acreage is the goal
In building its acreage, Mr. Reese noted that Ameredev is focused on developing substantially contiguous acreage in the state-line area of the northern Delaware. Ameredev has managed to assemble the majority of its acreage in contiguous blocks, despite the long leaseholds, pooling agreements, and other obstacles in New Mexico that might make it very difficult for a company to build such continuity.
By adding contiguous acreage, Ameredev has made it possible to improve efficiencies in infrastructure development and in the use of extended reach laterals. Reese stressed developing its contiguous acreage will allow Ameredev to “develop a lower cost and realize better full-cycle economics.”
A “second time team”
Ameredev’s team has already had the experience of successfully developing acreage within the Permian basin, in its previously held Ward County acreage. In moving forward, Mr. Reese believes that—between Ameredev’s veteran development team and the company’s new, contiguous acreage position—Ameredev is in a good position to establish a strong core asset base
Ameredev II, LLC. is presenting at EnerCom’s The Oil & Gas Conference® 22
Ameredev will be a presenting company at the upcoming EnerCom conference in Denver, Colorado—The Oil & Gas Conference® 22.
The conference is EnerCom’s 22nd Denver-based oil and gas focused investor conference, bringing together publicly traded E&Ps and oilfield service and technology companies with institutional investors. The conference will be at the Denver Downtown Westin Hotel, August 13-17, 2017. To register for The Oil & Gas Conference® 22 please visit the conference website.
