Sanchez Production Partners LP (NYSE MKT: SPP) has engaged Lantana Energy Advisors to assist with the possible divestiture of its assets and operations in Oklahoma and Kansas.
The assets considered for sale encompass the partnership’s operations and interests in the Cherokee Basin in Oklahoma and Kansas, the Woodford shale play in the Arkoma Basin in Oklahoma, and the Central Kansas Uplift in Kansas, which covers 207,000 developed and 15,000 undeveloped acres with exclusive rights to lease and develop almost 500,000 additional acres in Osage County, Oklahoma.
The assets include the partnership’s interests in 2,337 producing wells, 76% of which are operated. The wells have a net working interest of 85% and provided average net production of 3,449 MBOE per day in December 2014, of which 24% was oil and liquids production. Based on forward prices as of Dec. 31, 2014, the assets show proved reserves of 14,879 MBOE, of which 77% are developed, and probable reserves of 15,751 MBOE.
Charles C. Ward, CFO and treasurer of SPP’s general partner, said, “With other sales announced and under way in and around the areas where we operate our legacy assets, we see a unique opportunity to participate in a process that ultimately leads to basin consolidation. Having worked with Lantana on the successful divestiture of Black Warrior assets in 2013, we are very pleased to once again bring their team in to assist with our evaluation of strategic alternatives related to the possible sale of these assets.”