FourPoint Energy Closes Acquisition of Chesapeake’s Western Anadarko Basin Assets for $385 Million
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FourPoint Energy, LLC has closed on the previously reported acquisition to acquire all of Chesapeake Energy’s remaining Western Anadarko Basin oil and gas assets for a purchase price of $385 million. The transaction was funded by proceeds from equity issued to existing and new investors.
Subject to closing and post-closing adjustments the assets 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 approximately 64 percent natural gas and 36 percent oil and natural gas liquids. The assets cover approximately 473,000 net acres, within 15 counties in Western Oklahoma and the Texas Panhandle and are 98 percent held by production.
As of June 1, 2016, FourPoint Energy has assumed full operations of Chesapeake’s remaining Western Anadarko Basin properties. Included in the transaction FourPoint will take over three Chesapeake field offices located in Elk City, Oklahoma and Borger and Shamrock, Texas. Upon closing, FourPoint hired more than 90 former Chesapeake employees to join its existing field staff of 42. Including FourPoint’s current field office located in Woodward, Oklahoma, the company will now manage its field operations from all four of these locations.
Prior to customary post-closing adjustments, FourPoint’s Western Anadarko footprint boasts close to 900,000 net acres and net production of 435 Mmcfed with 42 percent of the production coming from oil and natural gas liquids. With the completion of this transaction FourPoint will become one of the largest exploration and production companies in the Mid-Continent region. As FourPoint begins the process of integrating these assets, it will continue to focus on growth through an active development program and through additional acquisitions.
About FourPoint Energy
FourPoint Energy is a privately held acquisition, exploration and production company headquartered in Denver, Colorado.
To stop by FourPoint’s website, CLICK HERE
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