Enamored with its oasis in the West Texas scrub, Parsley Energy Inc. (NYSE: PE) continues to build up its Permian Basin stronghold, saying April 4 it plans to acquire 22,908 net acres in the Southern Delaware and Midland basins.

Parsley said it expects to pay $359 million cash for the acreage, which is adjacent to acreage where it operates. The company said it will add 2,300 barrels of oil equivalent per day (boe/d) from nine producing horizontal wells and 97 vertical wells.

As with other recent purchases, Parsley is concurrently selling common stock with the gross proceeds of about $390.6 million to be used to pay for the acquisition. The company has already upsized its initial offering to 18.25 million shares from 16 million.

Parsley said it would spend more for several incremental completions associated with acquired wells along with accompanying facilities and infrastructure spending. Parsley’s capex range increased to $410 million to $460 million compared to earlier projections of $380 million to $430 million.

The company eventually will run up to three rigs in each basin.

The Southern Delaware package consisted of about 4,000 net acres associated with organic leasing and about 10,000 net acres associated with a privately negotiated deal with an undisclosed seller, according to Seaport Global Securities LLC.

“Based on the location of the acquired acreage, we believe the seller was likely Anadarko Petroleum Corp. (NYSE: APC),” Seaport said.

In 2015, Parsley acquired, sold and traded its way to a net 390 net horizontal drilling locations and 70 lateral extensions. As of March, the company had $770 million in liquidity and its oil volumes are fully hedged at the midpoint of its guidance range. The company holds $355 million in net debt. The company’s ratio of net debt to annualized, adjusted EBITDAX is 1.5x.

Parsley’s Midland Basin Wolfcamp A and B wells have tracked above the company’s 1 MMboe EUR type curve. In the Delaware, the company is appraising its second core with “outstanding initial results,” the company said.

In the fourth quarter of 2015, a Parsley Wolfcamp well, Bast 34-39-4412H, generated record 30-day cumulative oil production of 43,170 barrels of oil.

“We are excited to announce a set of bolt-on acquisitions that add to our premier asset bases

in both the Midland and Southern Delaware Basins,” said Bryan Sheffield, CEO of Parsley Energy. “These additions extend our running room in the Midland Basin and provide the critical mass necessary to make the Southern Delaware a core part of our ongoing development program. Together, the acquired properties increase our net acreage by 20%, and all have top-tier return potential.”

Based on the acquisition, Parsley raised its 2016 production guidance to 31.5 to 34.5 Mboe/d from 30 to 33 Mboe/d.

Darren Barbee can be reached at dbarbee@hartenergy.com.