Riley Exploration Permian has wrapped up the acquisition of oil and gas assets from Pecos Oil & Gas (Pecos), an affiliate of Cibolo Energy Partners.
The all-cash deal consideration was $330m, prior to customary purchase price adjustments.
As per the deal, which was announced in February 2023, Riley Exploration has acquired 11,700 total contiguous net acres in Eddy County, New Mexico, US.
In exchange, Riley Exploration has issued new, senior unsecured notes worth $200m. The firm funded the balance of the deal consideration with borrowings from its existing revolving credit facility.
The assets acquired from Pecos includes 11,700 total contiguous net acres in Eddy County, New Mexico. These have production rates of 7.2 million barrels of oil equivalent per day (boepd) and 4.2 million barrels of oil per day (bopd).
Commenting on the deal, Riley Permian CEO and chairman Bobby Riley earlier said: “Our team has been highly selective in reviewing acquisition opportunities, and this is a deal that fits our criteria, as it brings over 100 high quality drilling locations and provides immediate accretion to relevant financial metrics.
“This is an under-developed asset with extensive development potential, allowing for value creation potential through the drillbit.”
The transaction also covers more than 100 gross horizontal development drilling locations as well as 100% stake in water gathering and disposal infrastructure comprising nearly 70 miles of water gathering pipelines, multiple saltwater disposal wells and frac ponds.
Riley Exploration holds acreage located on large, contiguous blocks in Yoakum County, Texas and Lea, Roosevelt, and Chaves Counties, New Mexico.