Concho Resources (CXO) reported a summary of recent acquisitions of Permian Basin leasehold during the third and fourth quarter of 2011.
Concho Resources agreed to pay a total of $330 million to multiple parties for 137,000 gross or 114,000 net acres in the Delaware Basin. The company said that the acreage is “strategically positioned” near the company’s existing Bone Spring play leasehold. The acquired properties consist mostly of undeveloped leasehold but also have six million barrels of oil equivalent (BOE) of proved reserves and daily production of 1,500 BOE per day.
After the acquisitions close, Concho Resources will have 420,000 gross or 270,000 net acres under lease in the Delaware Basin at an average working interest of 64%. The properties add an estimated 350 drilling locations to the company’s inventory.
