Largest Unconventional Shale Producer in Permian to Drill Several Projects
Concho Resources Inc. revealed that, in the second half of this year, it plans to begin drilling “several development projects” on the acreage it acquired from RSP Permian Inc.
In July, Concho completed its acquisition of RSP, creating the largest unconventional shale producer in the Permian Basin. As a result of the deal, Concho expanded its portfolio in the Permian Basin to approximately 640,000 net acres.
In its second quarter results statement released Wednesday, Concho said it is running 32 horizontal rigs following the closing of the RSP transaction, including 16 rigs in the Northern Delaware Basin, six rigs in the Southern Delaware Basin, nine rigs in the Midland Basin and one in the New Mexico Shelf.
“The RSP transaction is consistent with our strategy of acquiring large, contiguous, high-quality assets in the Permian Basin,” Tim Leach, Concho chairman and chief executive officer, said in a company statement.
“With the transaction complete, we are excited about bringing together the talent from both organizations to capture the benefits of this powerful combination,” he added.
Following the announcement of the Concho-RSP deal, analysts told Rigzone that they viewed the transaction positively.
“The combined company will likely be in a very good position going forward,” David Beard, lead exploration and production analyst at Coker Palmer Institutional, told Rigzone a few weeks ago.
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