Concho Resources Inc. has closed its previously-announced acquisition of the oil and natural gas assets of Marbob Energy Corporation and certain affiliated entities (collectively "Marbob").

In addition, the Company purchased additional non-operated rights and interests in certain Marbob properties owned by persons affiliated with Marbob for approximately $32 million. As of June 30, 2010, estimated proved reserves associated with these additional interests totaled approximately 1.3 million barrels of oil equivalents ('MMBoe').

Aggregate consideration paid to Marbob at closing consisted of approximately $1.1 billion of cash, the issuance of approximately 1.1 million shares of Concho common stock and a $150 million senior unsecured note issued to Marbob due in 2018. The cash consideration was funded with borrowings under the Company's amended credit facility and with proceeds from a previously-announced $300 million private placement of Concho common stock.

The previously-announced purchase price was reduced by approximately $400 million due to the exercise of preferential purchase rights by third parties. As of October 1, 2010, current net daily production and proved reserves on the assets acquired from Marbob, reduced by the effects of the exercised preferential purchase rights, is approximately 12,000 barrels of oil equivalents per day ('Boepd') and 63 MMBoe, respectively.

Tags: Concho Resources Inc.