2010-11-09-2010-11-01

To buy 10,360 net acres in the Permian Wolfberry trend, gainingn 7.6 MMBOE proved.

Energen Resources Corp., the E&P subsidiary of Energen Corp., Birmingham, Ala., (NYSE: EGN) plans to acquire Permian Basin Wolfberry assets from a private seller for $75 million.

The all-in acquisition is approximate $19.42 per barrel equivalent, according to Energen.

The property includes six producing wells and two wells awaiting completion on 10,360 net Wolfberry acres in the southeast portion of the trend. Proved reserves are 7.6 million barrels of oil equivalents and probable reserves total 18.4 million barrels equivalent. The assets are largely oil and natural gas liquids (63% oil proved and probable).

Energen Resources has identified 63 proved undeveloped locations and 169 probable locations. The company plans to develop these properties during the next six years. Specific plans for this acreage in 2011 will be incorporated into the company's 2011 capital and operating budgets that will be finalized in early December.

The deal is expected to close by year-end, with an effective date of Dec. 1.