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Concho Pays $600 Million To Extend Midland Basin Laterals

Concho Resources Inc. (NYSE: CXO) folded 12,400-net acres in Andrews and Martin counties, Texas, into its expansive Midland Basin position to end July in a deal that expands its long-lateral inventory.

Concho paid $600 million for leasehold contiguous with its Mabee Ranch at a price of about $40,000 per acre, Michael Hsu, an analyst at Jefferies LLC, said.  The transaction was funded with cash on hand.

The July 31 acquisition includes average volumes of about 3,000 barrels of oil equivalent per day (boe/d), 73% oil, which Concho described as “legacy production.”

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