Centennial Resource Development a recently formed pure play Permian operator will acquire 35 000 net acres in the Delaware Basin of west Texas from Silverback Exploration for US$855 million. The assets located in Reeves County are adjacent to Centennial's existing position and include current net production of approximately 3 500 boe/d. Centennial will operate 95% of the acreage with an average working interest of 88%. The acquisition acreage located in our Reeves Core sub play boasts a breakeven price of US$40/bbl which is among the lowest in the US Lower 48. The deal provides Centennial with additional horizontal inventory that will extend field development life and allow for long term production growth. Further the continuity of its pro forma acreage position will allow the company to add value with extended laterals and operational synergies.