FourPoint Energy LLC said Wednesday is has signed agreements to pay $840 million for assets owned by two subsidiaries of Chesapeake Energy Corp. — boosting the private Denver company’s position in Oklahoma’s Western Anadarko Basin.
The $840 million purchase price actually covers three transactions involving Denver’s FourPoint for the assets of Chesapeake Exploration LLC and CHK Cleveland Tonkawa LLC, two subsidiaries of Oklahoma City-basked Chesapeake Energy.
FourPoint will get interest in about 1,500 producing wells in western Oklahoma in the Cleveland, Tonkawa and Marmaton rock formations. The wells produce the equivalent of an average 21,500 barrels of oil per day, split between oil, natural gas liquids and natural gas.
The assets cover nearly 250,000 net acres of mineral rights, centered on Roger Mills and Ellis counties in western Oklahoma.
The acquisition boosts FourPoint’s footprint in the Western Anadarko Basin, an area in western Oklahoma and the Texas Panhandle, to more than 400,000 net acres, about 4,600 wells, and a net production estimated at the equivalent of 260 million cubic feet per day of natural gas. About half the production will be crude oil and natural gas liquids.