(World Oil) – MCM Energy Partners has completed its acquisition of crude oil and natural gas assets in the Delaware basin from Battalion Oil Corporation, expanding its operated footprint in the core of the Permian basin and adding new development inventory in West Texas.
The assets, located in the West Quito Draw area of Ward County, Texas, include approximately 6,207 net acres across multiple benches in the Southern Delaware basin. The acquisition adds operated production, drilling inventory and development upside to MCM’s existing position in Ward County, where the company is actively drilling and completing wells as part of its Vulcan development program.
MCM said the transaction strengthens its strategy to build a multi-bench development platform in the Permian basin and provides additional scale across its operated acreage. The company plans to integrate the newly acquired properties into its ongoing drilling and completion activities and leverage existing infrastructure and technical expertise to advance development.
In connection with the acquisition, MCM entered into a new senior secured credit facility with Valor Upstream Credit Partners II, managed by Breakwall Capital, in partnership with Vitol. The financing supports the acquisition as well as ongoing development across MCM’s Permian asset base.
The company also continues to advance its Dawson County position in the Midland basin, providing additional inventory alongside its core operations in Ward County. MCM said the combined asset base positions the company for production growth and expanded drilling opportunities across both the Southern Delaware and Midland basins.
Legal and financial advisory services for the transaction included Jackson Walker LLP for MCM, Latham & Watkins LLP for Breakwall, and TenOaks Energy Advisors as financial advisor to Battalion.
