Franklin Mountain Energy, LLC, a newly-formed affiliate of Franklin Mountain Capital, announced the acquisition of approximately 8,321 acres in Lea and Eddy Counties, New Mexico via two separate transactions. On September 6th, FME acquired 4,041 acres in the Bureau of Land Management (“BLM”) New Mexico Oil and Gas Lease Sale.
On September 25th, FME announced that its affiliate had entered into a definitive agreement with OneEnergy Partners Operating, LLC (“OEP”) to acquire its existing operations and leasehold, totaling approximately 4,280 net acres in Lea and Eddy Counties. Approximately 77% of the acreage is operated, with a non-operated position in Eddy County.
Paul Foster, chairman of FME, commented, “We are very excited about these acquisitions and the start of FME’s footprint in the Delaware Basin. The combined acreage from these two acquisitions has made FME the largest private contiguous acreage holder across two of Lea County’s geologically-rich townships with a net revenue interest of 87.5% on over half of our operated acreage. With mostly undeveloped federal acreage and multiple geologic targets, we have hundreds of potential long lateral drilling locations, many high-pressure oil-weighted benches to develop, and the opportunity to utilize central facilities and multi-well pad development. Additionally, we see further opportunities to unlock value through joint ventures and midstream opportunities.”