Marathon Adds to Permian Acreage With $700M Buy

Oil Reuters

A maze of crude oil pipes and valves is pictured during a tour by the Department of Energy at the Strategic Petroleum Reserve in Freeport, Texas, U.S. June 9, 2016. REUTERS/Richard Carson (Copyright Reuters 2017)

Marathon Oil Corp (MRO) said on Tuesday it bought additional acreage in the Permian basin for about $700 million, the company's second purchase in less than two weeks as it focuses on higher-margin, lower-cost U.S. assets. The about 21,000 acres, situated in the Northern Delaware basin of New Mexico, was acquired from Black Mountain Oil & Gas and other private players, the company said.

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Marathon, which has said it would exit its Canadian oil sands business, bought up about 70,000 net surface acres in the oil-rich Permian basin for $1.1 billion earlier this month.

Oil producers have made a beeline for the Permian basin as the region's sprawling pipeline network, abundant labor and supplies and warm winters that allow year-round work help companies make money at current crude prices.

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