RSP Permian To Buy Certain Oil, Gas Producing Properties For $259 Mln Cash

(RTTNews) - RSP Permian, Inc. (RSPP), an independent oil and natural gas company, Friday said it will buy certain undeveloped acreage and oil and gas producing properties located in Glasscock County for nearly $259 million in cash, through separate transactions. The company expects the deals to add to its cash flow per share, earnings per share and as well as net asset value.

Commenting on the deal, Steve Gray, CEO of RSP said: "...The value of these acquisitions was principally in the undeveloped acreage as these assets have multiple horizontal targets and come with ample vertical inventory that will provide years of potential horizontal and vertical growth for the Company. With these transactions, we have meaningfully increased our drilling inventory in what we believe to be a top tier area in the Midland Basin."

Currently, the properties has net production of about 1,106 Boe/d with 13 vertical wells drilled to date. The company said it plans to begin a horizontal drilling program in Glasscock in 2015, after the necessary infrastructure to support horizontal operations is constructed and operational.

The group said it expects to fund the acquisitions through a combination of borrowings under its revolving credit facility, which carries a current borrowing base of $375 million.

The transactions are expected to close in late August 2014.