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AEP CEO Aubrey McClendon. Image courtesy of HeritageHallOKC/Youtube.

American Energy Partners agreed Monday to buy 14,000 net acres in the Permian Basin from Houston-based private equity firm Tall City Exploration for $440 million.

The assets include 14,000 net acres in Reagan County, Texas that produce 1,400 barrels of oil equivalent per day.

The deal is expected to close in December.

The purchase is being financed with cash and debt backed by Denham Capital Management, Oklahoma-based AEP said.

The new purchase brings AEP’s holdings in the Permian Midland sub basin to 28,000 net acres with estimated proved reserves of about 49 million barrels of oil equivalent.

Last month, AEP CEO Aubrey McClendon said the company’s Permian Basin unit may look into an initial public offering during the next year.