FourPoint Energy LLC has signed a definitive agreement to acquire all of Chesapeake Energy's remaining Western Anadarko Basin oil and gas assets for a purchase price of $385 million. The closing of the acquisition is expected to occur on April 29.
The assets to be acquired include an interest in nearly 3,500 producing wells primarily in the Granite Wash, Missourian Wash, Upper and Lower Cleveland, and Tonkawa formations. The production mix is 67% natural gas and 33% oil and natural gas liquids. The assets cover 473,000 net acres, within 15 counties in Western Oklahoma and the Texas Panhandle, and are 98% held by production.
FourPoint will assume full operations of the assets at closing. Pro forma for the acquisition and prior to customary post-closing adjustments, the company's footprint will exceed 884,000 net acres with net production estimated at 435 MMcfed from more than 7,600 gross wells, with 40% of the production coming from oil and natural gas liquids.
Jefferies LLC acted as financial advisor, and Andrews Kurth LLP acted as legal advisor to FourPoint Energy in connection with the transaction.