PostRock to acquire central Oklahoma properties

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.”

Related Articles

OTC: Pemex preparing for cultural transition as Mexico reforms energy laws

05/06/2014 Mexico’s Petroleos Mexicanos (Pemex) is preparing for a major cultural transition while the country’s government moves to implement energy reforms ...

OTC: Nova Scotia seeks bids in active eastern Canada offshore

05/06/2014 Exploration and development remain brisk offshore eastern Canada, provincial officials reported May 6 at the Offshore Technology Conference in Hous...

Falcon farms out portion of Beetaloo basin permits

05/06/2014 Falcon Oil & Gas Ltd., Dublin, has farmed out a portion of its exploration permits in the Beetaloo basin onshore Northern Territory to South Af...

OTC: Ocean-bottom seismic improves resolution for offshore subsurface

05/05/2014 Streamer technology is not new, however, it has gone through many advances within the last 30 years. In 1980, 120 channels were considered advanced...

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