MV Energy LLC, Wichita, has become operator of 10% of Kansas crude oil production with purchase of Kansas and Colorado properties from OXY USA Inc. for $74 million.
MV Energy is a partnership of Murfin Drilling Co., Vess Oil Corp., both private Wichita oil and gas operators, and GE Capital Structured Finance Group, Stamford, Conn. Kansas averages about 115,000 b/d of oil.
The purchase consists of proved reserves of 29 million bbl of oil equivalent and includes some of the state's highest producing oil fields.
OXY still operates a large share of supergiant Hugoton gas field, its only remaining property in the Midcontinent Region. OXY sold the other properties to Oneok Inc., Anadarko Petroleum Corp., and Chesapeake Energy Corp., during the past few months.
Assets acquired
Largest producing field in the MV Energy purchase is giant El Dorado field, Butler County, Southeast Kansas, averaging about 1,200 b/d of oil and no gas.
Combined production from the rest of the properties is slightly more than 3,000 b/d of oil and slightly less than 1 MMcfd of gas. The other properties:
Southeast Campo field, Baca County, Colo.
Various fields operated by others in Washington and Cheyenne counties, Colo.
Other Kansas properties:
Augusta field, Butler County.
Valley Center field, Sedgwick County.
Trapp and Hall-Gurney fields, Barton and Russell counties.
Bemis-Shutts field, Ellis and Rooks counties.
Ray field, Graham, Norton, Phillips, and Rooks counties.
Celia South field, Rawlins County.
Zenith-Peace Creek, Reno and Stafford counties.
David L. Murfin, president of Murfin Drilling, said, "This purchase represents a unique approach in competing on large production purchases. Our combined entities have the operational and financial strength to expand beyond this purchase, which is supported by an ongoing development program and an aggressive acquisition strategy."
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