Riley Exploration Permian Inc. said on April 4 that it completed its previously announced acquisition of New Mexico oil and natural gas assets from Pecos Oil & Gas LLC, an affiliate of Cibolo Energy Partners LLC.
Riley Exploration paid $330 million for the assets before customary purchase price adjustments, the company said in a press release. The deal, announced in February, added 11,700 contiguous net acres in Eddy County, New Mexico, with then-current production of 4,200 bbl/d (7,200 boe/d). The transaction included more than 100 gross horizontal development drilling locations.
Riley Exploration, in conjunction with the closing, issued $200 million in new, senior unsecured notes and funded the balance of consideration with borrowings from the company's existing revolving credit facility.
The Senior Notes will bear interest at an annual rate of 10.5% and will mature in April 2028. At the time of the acquisition, Riley Exploration also completed an amendment to its revolving credit facility to increase the borrowing base by $100 million to $325 million.
Recommended Reading
Kimmeridge’s Mark Viviano on Reshaping the Energy Sector, SilverBow-Crescent Deal
2024-05-16 - Kimmeridge Energy Engagement Partners’ Mark Viviano says the company is evaluating the Crescent Energy and SilverBow Acquisition and how Kimmeridge played a key role in transforming the shale sector in this Hart Energy Exclusive interview.
SUPER DUG Shale 4.0 Era about Building Scale- Rystad
2024-05-16 - The Shale 3.0 era or capital discipline era will be followed by the Shale 4.0 era, which will see companies focused on building scale, according to Rystad Energy Senior Shale Analyst Matthew Bernstein.
Adkins: Attacks on Fossil Fuels, Overregulation Poised to Backfire
2024-05-17 - Raymond James’ J. Marshall Adkins tells Hart Energy’s Super DUG conference attendees demonizing oil and gas, strenuous regulations and continued inflation are bound to have unexpected consequences for E&P opponents.
How Diversified Already Surpassed its 2030 Emissions Goals
2024-04-12 - Through Diversified Energy’s “aggressive” voluntary leak detection and repair program, the company has already hit its 2030 emission goal and is en route to 2040 targets, the company says.
BKV CEO Chris Kalnin says ‘Forgotten’ Barnett Ripe for Refracs
2024-04-02 - The Barnett Shale is “ripe for fracs” and offers opportunities to boost natural gas production to historic levels, BKV Corp. CEO and Founder Chris Kalnin said at the DUG GAS+ Conference and Expo.