Texas oil company looks to boost production in New Mexico

ALBUQUERQUE, N.M. (AP) — A Texas-based oil and gas company has reached a $430 million deal that will clear the way for more production in southeastern New Mexico. Concho Resources Inc. made the announcement this week, saying it has agreed to acquire dozens of square miles in the northern Delaware Basin. Much of the acreage is located in the Red Hills area in Lea County. Concho president and chief executive Tim Leach says the transaction will add to what the company is already doing in the region. Concho says the Red Hills area is generating exceptional returns at current prices and drilling there will help with the company's long-term growth. Although the number of rigs exploring for oil and natural gas has been rising elsewhere in the U.S. in recent weeks, experts say depressed energy prices continue to curtail exploration.