MIDLAND, Texas, Jul 30, 2010 (BUSINESS WIRE) --
Concho Resources Inc. (NYSE: CXO) ("Concho" or the "Company") today
announced that Marbob Energy Corporation and certain of its affiliated
companies (collectively, "Marbob") have informed Concho of the receipt
by Marbob of a notice from BP America Production Company ("BP") electing
to exercise its preferential purchase right under certain operating
agreements. BP's preferential purchase rights arise as a result of the
transactions contemplated by the definitive purchase agreement between
Concho and Marbob. Concho believes that BP's exercise of such
preferential purchase rights relates to approximately $400 million of
Marbob properties, predominately on the New Mexico Shelf.
On the same day as the announcement of the execution of a purchase
agreement between Concho and Marbob, BP and Apache Corporation announced
the execution of a purchase agreement under which BP is selling all of
its oil and gas properties in the Permian Basin to a subsidiary of
Apache Corporation. Certain of BP's Permian oil and gas properties are
subject to the same operating agreements from which BP derives its
preferential purchase rights described above.
To date, BP has not provided Marbob with the preferential purchase right
notifications required to be delivered pursuant to the applicable
operating agreements. To protect Marbob's preferential purchase rights,
Marbob and Concho have initiated litigation in New Mexico state district
court against BP and Apache's subsidiary seeking a declaratory judgment
and injunctive relief to compel BP to provide Marbob the preferential
purchase right notifications required by the applicable operating
agreements.
Forward-Looking Statements and Cautionary Statements
The foregoing contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. All statements, other than statements
of historical facts, included in this press release that address
activities, events or developments that the Company expects, believes or
anticipates will or may occur in the future are forward-looking
statements. These statements are based on certain assumptions made by
the Company based on management's experience, expectations and
perception of historical trends, current conditions, anticipated future
developments and other factors believed to be appropriate.
Forward-looking statements are not guarantees of performance. Although
the Company believes the expectations reflected in its forward-looking
statements are reasonable and are based on reasonable assumptions, no
assurance can be given that these assumptions are accurate or that any
of these expectations will be achieved (in full or at all) or will prove
to have been correct. Moreover, such statements are subject to a number
of assumptions, risks and uncertainties, many of which are beyond the
control of the Company, which may cause actual results to differ
materially from those implied or expressed by the forward-looking
statements. These include the factors discussed or referenced in the
"Risk Factors" section of the Company's 10-K filed with the Securities
and Exchange Commission ("SEC") on February 26, 2010 and risks relating
to uncertainty regarding the exercise of preferential purchase rights on
assets to be acquired in the Marbob acquisition; risks related to the
integration of the Marbob assets and employees with our operations;
uncertainties related to litigation associated with preferential rights
to purchase; and other important factors that could cause actual results
to differ materially from those projected.
Any forward-looking statement speaks only as of the date on which such
statement is made and the Company undertakes no obligation to correct or
update any forward-looking statement, whether as a result of new
information, future events or otherwise, except as required by
applicable law.
About Concho Resources Inc.
Concho Resources Inc. is an independent oil and natural gas company
engaged in the acquisition, development and exploration of oil and
natural gas properties. The Company's operations are focused in the
Permian Basin of Southeast New Mexico and West Texas. In addition, the
Company is involved in a number of emerging plays. For more information,
visit Concho's website at www.conchoresources.com.
SOURCE: Concho Resources Inc.
Concho Resources Inc.
Jack Harper, 432-683-7443
Vice President - Capital Markets and Business Development
