Concho Resources increases Permian position through US$1 billion acquisition
Concho recently announced the acquisition of Three Rivers' Permian assets for US$1 billion in cash. The deal highlights an increasing interest in the oil rich Permian Basin as operators focus their efforts on liquids production. Three Rivers holds 200,000 net acres prospective for several unconventional resource plays including the Bone Spring, Wolfberry, Wolfcamp and Cline. The acquired assets hold proved reserves of 58 mmboe (50% oil) and currently produce 7,000 boe/d.We value the ...