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.
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