PostRock Energy Corp., Oklahoma City, will acquire 22,000 net acres of leasehold in central Oklahoma that has current oil production and more than 10 million bbl of oil equivalent of potential in multiple reservoirs including the Woodford shale.
Consideration is $3 million cash and $7 million in PostRock common stock, giving the undisclosed sellers a large stake in PostRock Energy. Closing is expected within 30 days, retroactive to July 1.
About 9,000 of the 22,000 net acres in Pottawatomie, Cleveland, and McCain counties are held by production totaling 50 net boe/d from several formations at 3,000-6,000 ft. The acquisition will bring the company’s lease position in the area to more than 34,000 net acres.
PostRock estimates that the net proved reserves being acquired total 574,000 boe, 95% oil and 60% developed.
The Woodford is believed to be 200-300 ft thick at 4,500-6,500 ft across the entirety of the acreage.
Terry W. Carter, president and chief executive officer, said, “With this acquisition, we believe we could have as many as 200 potential drilling locations with exposure to more than 10 million boe of recoverable reserves. Importantly, the sellers’ willingness to become major stockholders…is a significant third party endorsement of how far the company has come.”