Texas-based Ring Energy Inc. announced Dec. 20 it has entered into a purchase and sale agreement with Carlyle Group LP subsidiary Tessara Petroleum Resources for the acquisition of assets in Andrews County, Texas.

The acquisition will add 5,313 net acres and 55 new gross horizontal drilling locations to its portfolio.

The assets consist of 4,763 net acres in the Central Basin platform and offsets the majority of Ring's top producing wells. Ring will be the operator, holding a 100% working interest and 75% net revenue interest.

In exchange, Tessara will hold 2.6 million shares of Ring valued at $5.80 per share. The closing date of the transaction will be before the end of 2018, with an effective date of Nov. 1, 2018.

The additional locations could add as much as $180 million of PV-10 value or approximately $2.85 per share at a price of $45 per barrel of oil equivalent. PV-10 represents the current value of estimated future oil and gas revenues, net of estimated direct expenses, discounted at an annual discount rate of 10%.