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Chaparral Energy increases position in Marmaton with Cabot acquisition

OKLAHOMA CITY -- Chaparral Energy, based in Oklahoma City, has entered into an asset purchase agreement with Cabot Oil & Gas to acquire net production of approximately 2,000 boed, and 66,000 net acres, in the Panhandle Marmaton play for $160.1 million, subject to pre- and post-closing adjustments.  The transaction essentially doubles Chaparral’s holdings in the Marmaton to 126,000 acres.

Located in Beaver and Texas counties, Okla., and Ochiltree County, Texas, production from the purchased assets is approximately 81% oil, with proved reserves estimated to be 8.4 million boe, and unproven reserves estimated to be 24 MMBoe, as of the effective date of Oct. 1.

The Cabot acquisition adds to Chaparral’s portfolio approximately 450 drilling locations targeting the Marmaton Lime formation, which typically generate RORs in the 40–70% range. In addition, this area offers significant upside associated with drilling numerous horizons in this stacked-pay environment.  The purchase includes significant infrastructure, including saltwater disposal wells and electricity, which will generate operating efficiencies and economies of scale by supplementing Chaparral’s existing footprint.      

The acquisition of Cabot’s Marmaton assets is scheduled to close on Dec. 18.

Chaparral is also announced that it has engaged an investment banker to divest non-core assets in its Ark-La-Tex and Permian basin areas.

10/17/2013

 

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