© 2014 The Texas Lawbook.
By Natalie Posgate – (July 24) – Midland-based Diamondback Energy, Inc. has agreed to acquire additional acreage in the Midland Basin from The Woodlands-based Rio Oil & Gas, LLC and Fort Worth-based Bluestem Energy Partners, LP for approximately $538 million.
The acquisition of approximately 13,000 acres will provide Diamondback with primarily operated leasehold interests, primarily located in Midland and western Glasscock Counties.
Houston Akin Gump partner Michael Byrd represents Diamondback in the transaction.
Dallas corporate partner Seth Molay led the deal for Diamondback. Houston oil and gas partner Michael Byrd led the purchase agreement team, with counsel Cody Carper and associate Rahul Vashi.
This isn’t the only deal Molay has handled for Diamondback this week. He also advised the company on its underwritten public offering of 5 million shares of common stock. After the underwriting discount and estimated offering expenses, net proceeds to Diamondback will be $421.7 million, or about $485 million if the underwriters’ option is excercised in full.
Houston Locke Lord partners Terry Radney, Mitch Tiras, Dale Smith and associate Hunter Summerford are advising Rio, Bluestem and certain other sellers in the transaction.
The deal is expected to close in September.
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