FourPoint Energy LLC, a privately owned Denver company, plans to acquire oil and gas assets from Chesapeake Energy Corp. subsidiaries Chesapeake Exploration LLC and CHK Cleveland Tonkawa LLC for $840 million.
The assets cover nearly 250,000 net acres centered in Roger Mills and Ellis counties in Oklahoma. About 95% of the leasehold is held by production.
Various transactions for the entire package involve interest in 1,500 producing wells primarily in the Cleveland, Tonkawa, and Marmaton formations. The wells had average net production of 21,500 boe/d for the 12 months ended Apr. 30.
The production mix was 7,000 b/d oil, 5,000 b/d of natural gas liquids, and 57 MMcfd of gas. FourPoint will assume full operations of the assets at closing, anticipated to be Aug. 31.
George Solich, FourPoint president and chief executive officer, said the acquisition complements FourPoint’s current acreage, boosting its inventory in formations largely unrepresented in the company’s current holdings.
Kamil Tazi, FourPoint executive vice-president and chief operating officer, said, “Chesapeake has developed this asset by drilling and completing over 190 horizontal wells since 2012.”
Chesapeake halted development and eliminated the active rigs working in the area during the first quarter.