Oklahoma City-based Riley Exploration Permian said Thursday it sold its natural gas gathering infrastructure in New Mexico to Targa Northern Delaware for about $111 million cash. The acquired asset, subsidiary Dovetail Midstream, consists of infrastructure serving producers in Eddy County in southeastern New Mexico in Permian Basin.
The agreement also provides for the sale of certain compressor station assets to Targa for about $10 million.
Bobby Riley, chairman and CEO, said, “This transaction fulfills the company’s goal of achieving flow assurance for its natural gas production, allowing for wider development of our New Mexico assets… This transaction allows us to focus our expertise and capital on the development of our upstream assets including our recent acquisition of Silverback Exploration.”