A Texas-based oil and gas company has reached a USD $430 million deal that will clear the way for more production in southeastern New Mexico. Concho Resources Inc. recently made the announcement, saying it has agreed to acquire dozens of square miles in the northern Delaware Basin. Much of the acreage is located in the Red Hills area in Lea County.
The Delaware Basin is part of the larger Permian Basin, which spans parts of West Texas and New Mexico and represents one of the nation’s most prolific areas of energy development. The area offers opportunities for increasing the density of development on multi-well pads, said Concho President and Chief Executive Tim Leach. The company plans to increase its rig count in the Delaware Basin in 2017 and expects to grow production volumes by about 20 percent.