Houston-based Silver Run Acquisition Corp., which launched earlier this year under the helm of former EOG Resources Inc. chief Mark Papa, has taken an 89% controlling interest in Permian Basin operator and private equity-backed Centennial Resource Production LLC.

Silver Run, a blank check company funded by Riverstone Holdings LLC, launched an initial public offering (IPO) in February to buy energy assets (see Shale Daily, Feb. 25). Centennial, backed by affiliates of NGP Energy Capital Management LLC, owns wells concentrated in the Delaware sub-basin (see Shale Daily, June 23).

With the transaction, Silver Run was renamed Centennial Resource Development Inc., and its common stock is to be traded on Nasdaq under “CDEV.”

Papa is to lead as chairman and CEO.

“Since our IPO, we have been searching to acquire a meaningful position in one of North America’s premier oil shale basins,” Papa said. “There has been a lot of recent excitement about the Delaware Basin, but we believe its potential is still significantly underappreciated. Centennial has an enviable position in the Delaware’s southern oil-rich core.”

“I look forward to replicating the culture and philosophy that made EOG Resources such a success during my time there and using the Centennial assets as a platform to build something truly special,” he said.

With the transaction, Centennial’s board has been doubled to eight. Besides Papa, board members are Maire A. Baldwin, Karl Bandtel, Pierre F. Lapeyre Jr., David M. Leuschen, Jeffrey H. Tepper, Robert M. Tichio and Tony R. Weber.

In conjunction with the merger, Riverstone purchased another $810 million of the renamed company’s common stock at $10/share, while funds managed by Capital World Investors and Fidelity Management and Research Co. purchased an aggregate $200 million at $10/share. Riverstone and affiliates now are the largest single stockholder of Centennial with 51% ownership, while NGP has retained an 11% interest.

The post-closing value of the combined company at $10/share is estimated at $1.835 billion.

Centennial holds around 42,500 net acres in West Texas, primarily in Reeves and Ward counties. Production is estimated at about 7,200 boe/d net, with 48.6 million boe net proved reserves at the end of June. The operator has identified more than 1,300 gross horizontal drilling locations, with stacked pay consisting of five currently producing zones and “upside for seven more.”