Canadian Vital Energy Inc plans to expand its presence in the U.S. Permian Basin through the acquisition of acreage for approximately $1.17 billion. The deal is estimated to boost the company’s current production by approximately 35,000 barrels of oil equivalent per day (boe/d).

The acquisition of Vital Energy includes deals with affiliates of Henry Energy and Henry Resources, Tall City Property Holdings III, and Maple Energy Holdings. These transactions are expected to be conducted in the fourth quarter of this year.

It will be funded by a combination of sales of stocks and securities, and borrowings.

The Permian Basin is the largest oil patch in the United States and is attracting increasing interest from drillers seeking to replenish their depleting assets. It is a prime target for producers looking to expand their resource base due to its favorable infrastructure, high productivity, and significant untapped reserves.

Vital Energy’s move to acquire additional acreage in the Permian Basin marks a significant step in the company’s growth strategy, as it aims to capitalize on the region’s vast resources and favorable market conditions.

In May, Vital Energy also acquired Permian assets of Forge Energy II Delaware, an EnCap portfolio company, in a $540 million all-cash deal.