Oklahoma City-based Riley Exploration Permian said last week it acquired Silverback Exploration, a largely undeveloped asset in New Mexico, for $142 million (cash) to add 5,000 boed of production and more than 300 gross undeveloped locations. Bobby D. Riley, chairman and CEO, also said the company is reducing 2025 investing midpoint guidance by 50 percent and midpoint total production guidance by 3 percent.
Riley said May 7, “This acquisition adds significant long-term upstream development potential and supports our prior decision to invest in gas midstream infrastructure in the region… This year we are prioritizing the acquisition and preservation of high-quality inventory over the conversion of inventory to production. We believe Riley Permian is well positioned to succeed in the current market environment.”
In first quarter Riley Permian averaged 24,400 boed of total production (oil production of 15,600 b/d). The company completed 6.3 net wells in 1Q. The Silverback deal adds about 47,000 net acres adjacent to the company’s existing acreage in Eddy County.
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