WPX Energy storms the Permian Basin with $2.75 billion deal for RKI Exploration

U.S. independent producer WPX Energy on Tuesday announced its acquiring privately-held RKI Exploration & Production for $2.75 billion including the assumption of $400 million of debt.The majority of RKI’s leasehold is located in the Permian Basin, the Delaware Basin located Loving County, Texas, and Eddy County, New Mexico, where the company has four rigs deployed.RKI’s liquids-rich assets include roughly 22,000 barrels of oil-equivalent per day (BOE/d) of existing production, more than half of which is oil; approximately 92,000 acres in the core of the Delaware – with roughly 98% held by production; more than 3,600 drilling locations across stacked pay intervals; and more than 375 miles of scalable gas gathering and water infrastructureThe acquisition metrics include roughly $1.1 billion for the existing production at $50,000 per flowing barrel, approximately $500 million for the established midstream infrastructure, which equates to an average of $12,500 per acre – or $1.15
http://www.shaledirectories.com/blog/wpx-energy-storms-the-permian-basin-with-2-75-billion-deal-for-rki-exploration/