AMAZ has leasehold on 70,000 acres in the Permian basin.
Yesterday,
WPX Energy Inc (WPX.N) agreed to buy privately held RKI Exploration & Production LLC for $2.35 billion, snapping up oil-rich assets in the Permian basin on the cheap amid a steep drop in crude prices.
The acquisition will give WPX about 92,000 acres in Permian's Delaware Basin - spread across Texas and New Mexico - at about $12,500 per undeveloped acre.
Acreage in the basin - the biggest and fastest-growing U.S. shale oil field - was worth as much as $30,000-$35,000 per acre at $100 oil, said Imperial Capital analyst Bob Christensen.
What price should AMAZ be selling at?
