Centennial Resource Development Inc. said Monday it would buy $855 million of energy acreage and assets, as it moves to expand its footprint in its current geographic area.
Centennial said it would acquire the upstream assets of Silverback Exploration LLC, including 35,000 acres of land, in a transaction that involves an affiliate of private-equity firm Riverstone Holdings LLC buying the assets, then assigning the right to purchase the assets to Centennial.
The assets are in Reeves County, Texas, in the Delaware Basin, a sub-basin of the Permian Basin. Denver-based Centennial's assets are already concentrated in the Delaware Basin. The assets haveabout 3,500 barrels of oil equivalent a day current production and there are "at least" 600 horizontal drilling locations.
Centennial Chief Executive Mark Papa said Centennial didn't expect to make a deal so quickly and that he "could not pass up the opportunity" to buy the assets "at such a compelling price."
This summer, Riverstone said it had agreed to buy an 89% stake in Centennial Resources. Riverstone then said it agreed to turn over that right to Silver Run Acquisition Corp. in exchange for becoming the majority stakeholder in Silver Run.
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(END) Dow Jones Newswires
November 28, 2016 08:35 ET (13:35 GMT)
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