By OGJ editors
HOUSTON, July 20 -- Concho Resources Inc. will acquire the oil and gas assets of Marbob Energy Corp. for $1.65 billion cash and Concho securities. Both are Midland, Tex., firms.
Concho Resources said the acquisition has been one of its highest priorities for the last 3 years, will double its Yeso drilling inventory, and will give it a combined position of more than 100,000 net acres in the emerging Bone Spring play. It said it will increase the activity level and rig count on the acquired properties.
Marbob is a private exploration and production company that operates in the Permian basin of Southeast New Mexico.
The acquisition includes 76 million boe reserves, 58% oil and 63% proved developed, 166 million boe of estimated unproved recoverable hydrocarbons, and 2,300 identified drilling locations, 350 of them proved undeveloped, including 1,300 in the Yeso and 1,000 in the Bone Spring.
First quarter 2010 net production averaged 14,000 boe/d.
Marbob is running five rigs, including one drilling Yeso wells on the Southeast New Mexico shelf and four in the Bone Spring play. Concho Resources will retain Marbob’s experienced technical and operational staff.