Chaparral to acquire Cabot’s Anadarko Marmaton assets

Chaparral Energy Inc., Oklahoma City, will double its holdings in the Oklahoma Panhandle Marmaton play with acquisition from Cabot Oil & Gas Corp. of 66,000 net acres and 2,000 b/d of oil equivalent production for $160.1 million.

Chaparral also said it engaged an investment banker to divest noncore assets in its Ark-La-Tex and Permian basin areas.

The assets being acquired from Cabot have 8.4 million boe of proved reserves and an estimated 24 million boe of unproved reserves in Beaver and Texas counties, Okla., and Ochiltree County, Tex. Production is 81% oil. Closing is set for Dec. 18.

Chaparral Energy said the acquisition gives it the largest position in the play and adds 450 drilling locations to target the Marmaton lime formation. Completions typically generate 40-70% rates of return, it added.

The acreage also offers large upside associated with drilling numerous horizons in a stacked-pay environment. The purchase includes extensive infrastructure, including saltwater disposal wells and electricity, that will generate operating efficiencies and economies of scale by supplementing the company’s existing footprint.

Related Articles

EIA: US sees lowest pre-Labor Day gasoline prices in 4 years

08/29/2014 US retail prices for regular gasoline averaged $3.45/gal on Aug. 25, which was lowest price on a Monday preceding the Labor Day holiday in the US s...

India’s ONGC to invest in Daman development in Arabian Sea

08/29/2014 India’s Oil & Natural Gas Corp. will invest $864.5 million to enhance natural gas and condensate production from its Tapti Daman block in the A...

Nexen boosts CNOOC’s first-half production

08/29/2014 Nexen Energy ULC contributed 36.3 million boe during this year’s first half to CNOOC Ltd.’s total net oil and gas production of 211.6 million boe, ...

California lawmakers pass in-state gas system methane emissions bill

08/28/2014 The California Senate passed a bill aimed at curbing methane emissions from intrastate natural gas pipelines and local distribution systems. SB 137...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected