FourPoint Energy to Acquire Chesapeake Energy’s Remaining Western Anadarko Assets for $385 Million
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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 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 approximately 67 percent natural gas and 33 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. The closing of the acquisition, which is expected to occur on April 29, 2016, is subject to customary conditions to closing. FourPoint will assume full operations of the assets at closing.
“This acquisition will significantly increase our position in the Western Anadarko Basin and will give us greater operatorship and capital control. The properties to be acquired create visibility into decades of development growth and closely overlap FourPoint’s current acreage footprint. By optimizing our position we enhance optionality in drilling inventory allowing us to target the best upside locations that achieve the most economic rates of return,” said George Solich, president and CEO of FourPoint.
“As the markets continue to remain volatile, acquiring an attractive producing asset that will significantly increase our current asset base while providing a stable cash flow profile should give FourPoint the financial flexibility to modify and adapt our development plan,” said Tad Herz, executive vice president and CFO.
“As we integrate these assets within our organization, FourPoint will continue to develop operating efficiencies and capitalize on synergies resulting from the combined asset. This significant increase to our operated position coupled with our extensive technical expertise will give us much greater optionality to execute on a well-developed plan to grow reserves, production and cash flow,” said Kamil Tazi, executive vice president and COO.
Pro forma for the acquisition and prior to customary post-closing adjustments, FourPoint’s footprint will exceed 884,000 net acres with net production estimated at 435 Mmc fed from more than 7,600 gross wells, with approximately 40 percent of the production coming from oil and natural gas liquids.
About FourPoint
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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