SM Energy Co. (NYSE: SM) is beginning a process to sell its assets in the Arkoma Basin of Oklahoma and in the Arklatex area of East Texas and Northern Louisiana. These assets produced approximately 3.4 MMBOE, net, during 2014 (98% gas). The sale process will be managed by RBC Richardson Barr & Co.
Assuming acceptable bids are received, the closing of the sale should be in mid-2015. The company also plans to close its Mid-Continent regional office in Tulsa, Oklahoma, later this year and to relocate many of its personnel to its other offices.
SM Energy CEO Tony Best said, “We had a strong 2014 driven by outstanding well results across the company. This was particularly true in our core Eagle Ford and Bakken/Three Forks development areas where we have economic drilling inventory equating to over 20 years of current company production and 10 years of gross locations at our current pace. As part of our effort to create differential shareholder value, we are launching a process to sell the remainder of our Mid-Continent and Arklatex assets and shift our resources to further focus on the development of these core assets.”