In addition, the company purchased additional non-operated rights and interests in certain Marbob properties owned by persons affiliated with Marbob for approximately $32m.

As of 30 June 2010, estimated proved reserves associated with these additional interests totaled approximately 1.3 million barrels of oil equivalents (mmboe).

Aggregate consideration paid to Marbob at closing consisted of approximately $1.1bn of cash, the issuance of approximately 1.1 million shares of Concho common stock and a $150m senior unsecured note issued to Marbob due in 2018.

The cash consideration was funded with borrowings under the company’s amended credit facility and with proceeds from a previously-announced $300m private placement of Concho common stock.

The earlier purchase price was reduced by approximately $400m due to the exercise of preferential purchase rights by third parties.

As of 1 October 2010, current net daily production and proved reserves on the assets acquired from Marbob, reduced by the effects of the exercised preferential purchase rights, is approximately 12,000 barrels of oil equivalents per day (boepd) and 63mmboe, respectively.