Independent Oil Company Buying Oil and Gas Fields in Lea County

Staff Report
The Associated Press

HOBBS, N.M. (AP) - An independent oil and gas exploration company is buying nine Permian Basin fields, including some in Lea County, from Marathon Oil Corp.

The deal is worth $187.4 million.

Apache Corp. acquired Marathon's company-operated assets in Lea County and three Texas counties, plus Marathon's interests in an area of Pecos County, Texas.

The President of Apache Corp. North America, John Crum, says the purchase will be final later this year.

Crum says Apache has identified 200 Marathon locations it will target for new drilling in the future.

A news release says that when Apache increased well spacing at another unit from 16 wells per square mile to 32, production rose from 700 barrels per day to 2,000 barrels a day. Marathon's fields currently have 16 wells per section.