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.
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.