Privately held Silverback Exploration LLC will sell oil and gas assets in the Delaware Basin, Texas, for $855 million to Centennial Resource Development Inc, which is backed by energy private equity fund Riverstone Holdings LLC.

The assets have net production of about 3,500 barrels of oil equivalent per day.

The deal will increase Centennial’s 2020 oil production goal to 50,000 barrels of oil per day from 30,000 barrels of oil per day, the company said.

Riverstone agreed to invest up to $500 million in Centennial’s common and convertible preferred shares.

Centennial was formed earlier this year through a business combination of Centennial Resource Production LLC and Silver Run Acquisition Corp, a special purpose acquisition company formed by Centennial Chief Executive Mark Papa and Riverstone Holdings.

Weil, Gotshal & Manges LLP acted as Centennial’s legal adviser. Latham & Watkins LLP was Riverstone’s legal adviser and Kelly Hart & Hallman LLP provided legal advice to Silverback.

Tudor, Pickering, Holt & Co was Silverback’s financial adviser.

Source: Reuters