Concho Resources Inc. (NYSE: CXO) completed its acquisition of about 40,000 net acres in the core of the Midland Basin from Reliance Energy for about $1.62 billion, the company said Oct. 4.

The acquired assets, which are in Andrews, Martin and Ector counties, Texas, include production of 10,000 barrels of oil equivalent per day, 67% crude.

Concho is currently running one rig on the acquired assets and plans to add a second rig in early 2017.

Concho also said it recently completed its redemption of the $600 million of 7.0% senior notes due January 2021.

Pro forma for the notes redemption, the stock offering closing and the Reliance acquisition closing, Concho had long-term debt of about $2.7 billion as of June 30. Its pro forma liquidity totaled about $2.5 billion as of June 30.

Concho Resources Inc. is based in Midland, Texas.