Concho Resources (CXO) reported that the company will acquire the Three Rivers Operating Company, a private oil and gas company with assets in the Permian Basin. The company will pay $1 billion for 200,000 net acres across the Delaware and Midland Basins.
Concho Resources said that the acreage is prospective for the Wolfberry, Wolfcamp and Cline shale plays. Other details of the properties:
- Proved reserves of 58 million barrels of oil equivalent (BOE)
- Net production of 7,000 BOE per day
- 65% of acreage held by production
- 380 horizontal drilling locations in the Delaware Basin and 1,100 vertical drilling locations in the Midland Basin.