Benchmark Energy II, which is majority owned by Acacia Research, has agreed to acquire certain upstream assets and related facilities in Texas and Oklahoma, US, from an undisclosed private seller. 

Under the purchase and sale agreement (PSA), Benchmark Energy will acquire upstream assets including more than 470 operated producing wells and approximately 140,000 net acres.

The acquisition is a major step for Benchmark, enhancing its operated position in the Western Anadarko Basin with more than 110,000 net acres, all held-by-production.

An additional 27,000 net acres in the emerging Cherokee play are also part of the deal.

The assets include a liquids-rich, low-decline, mature production base producing around 6,000 barrels of oil equivalent per day across the operated wells.

The assets are expected to diversify Benchmark's production, with a balanced portfolio of 60% liquids and 40% natural gas, and offer potential operational synergies due to their proximity to Benchmark's existing Texas operations.

Benchmark CEO Kirk Goehring said: “The acquisition of these assets represents a transformative moment in Benchmark Energy’s history and an important next step in our partnership with Acacia and McArron.

“This unique asset is expected to deliver attractive, mature production with multiple drivers to enhance value. After closing this acquisition, Benchmark will have a large, contiguous acreage position in the heart of the Mid-Continent, and incremental scale to continue driving meaningful operational enhancements to create attractive returns for our stakeholders for many years to come.”

The acquisition aligns with Acacia's approach to drive returns through cash flow-focused investments in oil and gas properties.

The transaction, anticipated to close in the second quarter of 2024, will be funded by cash from Benchmark's owners, Acacia and McArron Partners.

In 2023, Acacia Research acquired a majority stake in Benchmark Energy II.