Alabama-based Energen Corp., Birmingham, (NYSE: EGN) via E&P subsidiary Energen Resources Corp., has closed its acquisition of interests in Fuhrman-Mascho Field in the Permian Basin of West Texas from Range Resources Corp., Fort Worth, Texas, (NYSE: RRC) for $182 million.

Included are Range’s interests in 445 producing wells and 54 water injection wells on approximately 13,200 acres in Andrews County. Net daily production from the properties averaged 15.5 million cu. ft. equivalent in the first quarter (2,131 bbl. of oil; 2.7 million cu. ft. of gas) from the Grayburg-San Andres formation at depths of 4,000 ft. to 4,800 ft. Energen estimates total proved reserves of 15.3 million bbl. of oil equivalent (91.9 billion cu. ft. equivalent; 70% proved developed producing; 76% oil), representing 90% of the purchase price, with 3.6 million bbl. equivalent of proved undeveloped (PUD) reserves accounting for 10%.

Energen estimates that future development costs associated with identified PUD reserves will be approximately $57 million for drilling 90 new wells, bringing the all-in reserve acquisition cost to approximately $16.30 per bbl. of oil equivalent. The effective date is May 1.

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