Concho Resources has signed an agreement to acquire the oil and gas assets of Marbob Energy Corporation for $1.65bn.

Marbob assets hold proved reserves of 76 million barrels of oil equivalent as well as 166 million boe in unproved reserves. Marbob produced about 14,000 barrels of oil equivalent per day in the first quarter of this year.

“This acquisition has been one of our highest priorities for the last three years. These assets are a perfect complement to our New Mexico Shelf position, the company said in statement.