Published: 4:24 pm, Wed. Jul. 21st, 2010Updated: 8:58 am
By JASON WATKINS
Daily Press Editor
ARTESIA — Midland, Texas-based oil company Concho Resources Inc. continued its conquest of the Pecos Valley oil patch on Tuesday, acquiring Artesia’s Marbob Energy Corporation in a $1.65 billion deal.
“We are pleased to announce the largest and most strategic acquisition in our company’s history,” Concho’s chairman, CEO and president Timothy A. Leach said in a statement by the company. “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, and they double our Yeso drilling inventory.”
The acquisition includes some 2,300 drilling sites in the Yeso and Bone Springs plays, and an estimated 76 million barrels of proven oil reserves currently held by Marbob, Concho’s press release stated.
Concho, which also purchased a portion of Chase Oil Corporation in 2006, will increase drilling activity in the Permian Basin, adding 10 active drill sites to Marbob’s existing five.
Marbob’s production during the first quarter of 2010 was 14,000 barrels of oil per day. …