RSP Permian Inc. (RSPP) closed the bolt-on acquisitions in its core Midland Basin operating areas for about $274 million in cash, the company said Aug. 25.
There are 5,704 net surface acres, or 27,287 net effective horizontal acres, with 162 net horizontal drilling locations in five zones. The zones are the Middle Spraberry, Lower Spraberry, Wolfcamp A, Wolfcamp B and Wolfcamp D, or Cline.
The estimated resource potential is more than 85 million barrels of oil equivalent. The resources are fully operated by the company, are all HBP and have 23% average royalty burden, RSP said.
Concurrent with closing the acquisitions, RSP and its lenders closed an amendment under the revolving credit facility that increased the borrowing base to $600 million. There are currently no drawn amounts under the facility. The next redetermination is scheduled for May 1, 2016.
Steve Gray, CEO, said the increased borrowing base will support drilling plans and strategic opportunities.
RSP Permian Inc. is based in Dallas.
Recommended Reading
2023-2025 Subsea Tieback Round-Up
2024-02-06 - Here's a look at subsea tieback projects across the globe. The first in a two-part series, this report highlights some of the subsea tiebacks scheduled to be online by 2025.
Subsea Tieback Round-Up, 2026 and Beyond
2024-02-13 - The second in a two-part series, this report on subsea tiebacks looks at some of the projects around the world scheduled to come online in 2026 or later.
Going with the Flow: Universities, Operators Team on Flow Assurance Research
2024-03-05 - From Icy Waterfloods to Gas Lift Slugs, operators and researchers at Texas Tech University and the Colorado School of Mines are finding ways to optimize flow assurance, reduce costs and improve wells.
PGS Wins 3D Contract Offshore South Atlantic Margin
2024-04-08 - PGS said a Ramform Titan-class vessel is scheduled to commence mobilization in June.
TGS Commences Multiclient 3D Seismic Project Offshore Malaysia
2024-04-03 - TGS said the Ramform Sovereign survey vessel was dispatched to the Penyu Basin in March.