(World Oil) – LandBridge today announced it has entered into a purchase and sale agreement to acquire approximately 46,000 largely contiguous surface acres in the Southern Delaware Basin known as the Wolf Bone Ranch for total consideration of $245 million in cash from VTX Energy Partners, a subsidiary of Vitol.
Located adjacent to LandBridge’s existing surface acreage in Reeves County, Texas, the Wolf Bone Ranch is well-positioned at a strategic intersection of oil and natural gas exploration and transportation, with access to the Waha Gas market hub. The land also supports produced water operations, with current volumes of approximately 300 MBbls/d serviced by infrastructure owned and operated by VTX Energy, as well as assets owned and managed by WaterBridge. VTX Energy has agreed to a minimum annual revenue commitment to LandBridge of $25 million for the next five years.
“This acquisition demonstrates our continued commitment to our active land management strategy across the Delaware Basin, and we see significant opportunities for a broad range of industrial development and revenue growth on the Wolf Bone Ranch,” said Jason Long, CEO of LandBridge. “These opportunities include commercial real estate opportunities along the over seven miles of Highway 285 frontage and potential digital infrastructure and renewable energy projects.”
LandBridge expects to fund the purchase price of the acquisition with a portion of the net proceeds from a private placement transaction and borrowings under its debt facilities.
About LandBridge
LandBridge owns approximately 221,000 surface acres across Texas and New Mexico, located primarily in the heart of the Delaware sub-basin in the Permian basin, the most active region for oil and natural gas exploration and development in the U.S. Formed by Five Point Energy LLC, LandBridge actively manages its land and resources to support and encourage oil and natural gas production and broader industrial development.
About Vitol
Vitol has a strong presence across the energy spectrum: from oil to power, renewables and carbon. Vitol trades 7.3 mmbpd of crude oil and products, and charters around 6,000 sea voyages every year. Vitol’s counterparties include national oil companies, multinationals, leading industrial companies and utilities.
