Independent oil, natural gas company acquires New Mexico assets for $330 million

World Oil Staff April 04, 2023

(WO) – Riley Exploration Permian, Inc. announced that it completed its previously announced acquisition of New Mexico oil and natural gas assets from Pecos Oil & Gas, LLC, an affiliate of Cibolo Energy Partners LLC.

Consideration for the New Mexico Acquisition was $330 million before customary purchase price adjustments. In conjunction with the closing, the company issued $200 million in new, senior unsecured notes and funded the balance of consideration with borrowings from the company's existing revolving credit facility. The Senior Notes will bear interest at an annual rate of 10.5% and will mature in April 2028.

At the time of the acquisition, the company also completed an amendment to its revolving credit facility to increase the borrowing base by $100 million to $325 million.

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