WPX completes acquisition of Permian producer

WPX Energy (NYSE: WPX) has closed its purchase of RKI Exploration & Production LLC.

With the merger complete, WPX now has a presence in the core of the Permian’s Delaware Basin that includes 22,000 boe/d of existing production – more than half of which is oil; 92,000 net acres – approximately 98% of which is held by production; more than 3,600 gross risked drilling locations across stacked pay intervals; and more than 375 miles of scalable gas gathering and water infrastructure.

The newly acquired Permian assets have existing production from 10 of 12 prospective benches in a 9,000 foot hydrocarbon-charged stratigraphic column that includes the Wolfcamp, Bone Spring, Avalon, and Delaware Sands intervals.

Adding the Permian assets increases WPX’s total proved liquids reserves by 33% to 268 MMbbl as of year-end 2014. Total net resource potential for the Permian assets is estimated at more than 1.1 billion boe.

Additionally, WPX has amended its revolving credit facility, increasing its total commitments from $1.5 billion to $1.75 billion, favorably modifying existing financial covenants to enhance the company’s liquidity position going forward.

Barclays and Tudor, Pickering, Holt & Co. acted as financial advisors to WPX on the RKI transaction. Weil, Gotshal & Manges LLP served as legal advisor to WPX.

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