RSP Permian to add to Midland assets

HOUSTON, October 7, 2015 – RSP Permian is planning to acquire undeveloped land for $137 million in a move to add to its existing assets in the Midland Basin, the US oil and gas independent announced in a company release Wednesday.

RSP Permian signed a letter of intent with Houston-based Wolfberry Partners Resources that includes oil and natural gas producing property. The acreage comprises 16.6 square kilometres and produced 19,000 barrels of oil equivalent per day in August 2015.

“If the potential acquisition closes, we will have meaningfully enhanced our acreage footprint and increased our horizontal development inventory in the core of the Midland Basin by over 25 percent in the past few months,” Steve Gray, RSP CEO, said in a statement.

If a purchase and sales agreement is finalised, the transaction would close in the fourth quarter of this year. RSP Permian would then be required to pay $60 million at closing and the remainder within nine months.

Earlier this year, RSP purchased around 23.1 square kilometres of land in the Midland Basin valued at $274 million.

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