Concho Resources Inc. to Acquire Oil & Gas Assets in the Permian Basin
Concho Resources Inc. (NYSE: CXO - News) (“Concho” or the “Company”) today announced that it has entered into a definitive agreement to acquire all the oil and natural gas assets of Three Rivers Operating Company and certain affiliated entities (collectively, “Three Rivers”) for $1.0 billion in cash. Three Rivers is a privately-held exploration and production company with approximately 310,000 gross (200,000 net) acres in the Permian Basin, including large positions in the Company’s core northern Delaware Basin play, the Midland Basin Wolfberry play, and the emerging southern Midland Basin horizontal Wolfcamp and Cline shale plays.
Highlights of the Three Rivers Acquisition:
Estimated proved reserves of approximately 58 million barrels of oil equivalent (50% oil and 55% proved developed) as of April 1, 2012
Estimated current net production of 7,000 barrels of oil equivalent per day
Adds approximately 380 identified horizontal drilling locations in the Delaware Basin, almost all of which are unproved, and over 1,100 vertical drilling locations in the Midland Basin, of which over 740 are unproved
Represents a 42% increase to net acreage in the Midland Basin and a 23% increase to net acreage in the northern Delaware Basin
Approximately 65% of the acreage is held by production