sale from northern midland basin

Athlon Energy has entered into a purchase and sale agreement with undisclosed sellers to acquire certain assets in the northern Midland Basin totaling approx. 5,645 net acres for $88 million in cash. The properties are concentrated near the Company’s existing operating areas in Midland, Upton, Martin, and Andrews counties, with current production of approx. 750 BOE/D (60% oil). Other highlights include:

70 gross horizontal Wolfcamp A, Wolfcamp B and Cline locations (~5,000 ft. lateral average);
58 gross producing vertical wells and 250 additional gross vertical locations;
2.9 MMBOE of proved reserves; and
82% operated with 72.5% average working interest.
The acquisition will be funded with a combination of cash-on-hand and borrowings under the Company’s undrawn $525 million revolving credit facility and is expected to close in February 2014 with a September 1, 2013, effective date.

Athlon has added approx. 11,000 net acres of leasehold since the time of its initial public offering, including today’s announced acquisition. The Company’s total acreage position currently stands at approx. 109,000 net acres, entirely in the northern Midland Basin.