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WPX Energy said on Monday that it has acquired more than 120,000 combined net acres in the Permian Basin from two companies.

WPX acquired the acreage from Panther Energy Company II and Carrier Energy Partners.

WPX plans to close the $775 million cash transaction in about 60 days using a combination of proceeds from an equity issuance and cash on hand.

The acquisition includes approximately 6,500 barrels of oil equivalent per day of existing production, with 55 percent being oil.

Existing production from the acreage is tied to 23 producing wells with 17 of those wells being horizontals.

The acquisitions also include two drilled but uncompleted horizontal laterals, 18,100 net acres in Reeves, Loving, Ward and Winkler counties in Texas and 920 gross undeveloped locations in the “geologic sweet spot” of the Delaware Basin, WPX said.

WPX said it expects the acquisition to be immediately accretive and to accelerate its deleveraging progress without increasing its projected 2017 capital outspend.

WPX expects the incremental cash flow from the purchase to fund the existing two-rig program on the acquired acreage.

The acquisition will bring WPX’s rig count in the Permian up to seven rigs.

The acquisition will increase WPX’s total gross drillable Delaware locations from about 5,500 to about 6,400 locations.

The new drillable locations include more than 150 long laterals measuring between 1.5 and 2 miles long, WPX said.

WPX said it’s now targeting 30 percent oil growth and 25 percent overall production growth in 2017 on a pro forma basis.

WPX added that it now expects its fourth quarter 2016 oil production to exceed the 42,000 to 44,000 bpd range, despite recent weather conditions in North Dakota’s Williston Basin.

“In just 18 months, WPX has firmly established itself as a leader in the Delaware Basin….The acquisition leverages our experience to create long-term shareholder value, further builds our inventory of core acreage and accelerates our oil growth with cash,”  WPX chairman, president and chief executive officer Rick Muncrief said.