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Franklin Mountain Energy announced the acquisition of approximately 8,321 acres in Lea and Eddy Counties, New Mexico, via two separate transactions. On September 6th, FME acquired 4,041 acres in the Bureau of Land Management (“BLM”) New Mexico Oil and Gas Lease Sale. On September 25th, FME announced that its affiliate had entered into a definitive agreement with OneEnergy Partners Operating, LLC (“OEP”) to acquire its existing operations and leasehold, totaling approximately 4,280 net acres in Lea and Eddy Counties. Approximately 77% of the acreage is operated, with a non-operated position in Eddy County. OEP is a portfolio company of Carnelian Energy Capital, a Houston-based energy investment firm.
The Permian Basin, which spans western Texas and eastern New Mexico, represents the most prolific hydrocarbon production region in the United States. They accounted for about 30% of U.S. crude oil production and 14% of U.S. natural gas production (measured as gross withdrawals) in 2020. Technology innovations, such as longer lateral wells and multi-well pad drilling, has helped reduce costs and increase productivity in developing oil and natural gas resources in the Permian Basin.