DENVER, Feb. 24, 2016 /PRNewswire/ -- FourPoint Energy, LLC announced today the signing of a definitive agreement to acquire all of Chesapeake Energy's remaining Western Anadarko Basin oil and gas assets for a purchase price of $385 million. The assets to be acquired include an interest in nearly 3,500 producing wells primarily in the Granite Wash, Missourian Wash, Upper and Lower Cleveland and Tonkawa formations. The production mix is approximately 67 percent natural gas and 33 percent oil and natural gas liquids. The assets cover approximately 473,000 net acres, within 15 counties in Western Oklahoma and the Texas Panhandle and are 98 percent held by production. The closing of the acquisition, which is expected to occur on April 29, 2016, is subject to customary conditions to closing. FourPoint will assume full operations of the assets at closing.
George Solich, President and CEO of FourPoint said, "This acquisition will significantly increase our position in the Western Anadarko Basin and will give us greater operatorship and capital control. The properties to be acquired create visibility into decades of development growth and closely overlap FourPoint's current acreage footprint. By optimizing our position we enhance optionality in drilling inventory allowing us to target the best upside locations that achieve the most economic rates of return."
Tad Herz, Executive Vice President and CFO said, "As the markets continue to remain volatile, acquiring an attractive producing asset that will significantly increase our current asset base while providing a stable cash flow profile should give FourPoint the financial flexibility to modify and adapt our development plan."
Kamil Tazi, Executive Vice President and COO noted, "As we integrate these assets within our organization, FourPoint will continue to develop operating efficiencies and capitalize on synergies resulting from the combined asset. This significant increase to our operated position coupled with our extensive technical expertise will give us much greater optionality to execute on a well-developed plan to grow reserves, production and cash flow."
Pro forma for the acquisition and prior to customary post-closing adjustments, FourPoint's footprint will exceed 884,000 net acres with net production estimated at 435 Mmcfed from more than 7,600 gross wells, with approximately 40 percent of the production coming from oil and natural gas liquids.
Jefferies LLC acted as financial advisor and Andrews Kurth LLP acted as legal advisor to FourPoint Energy in connection with the transaction.
FourPoint Energy is a privately held acquisition, exploration and production company headquartered in Denver, Colorado. Join our team at FourPointEnergy.com.
This Press Release contains forward-looking statements based on FourPoint Energy's current expectations that involve a number of risks and uncertainties. Generally, forward-looking statements do not relate strictly to historical or current facts and may include words such as "believes," "will," "expects," "anticipates," "intends" or similar words or phrases. Forward-looking statements in this press release include, but are not limited to, statements regarding expectations (i) that the acquisition will close on the anticipated closing date or at all, (ii) as to the productivity of the acquired assets, and (iii) with respect to the realization of operating efficiencies and synergies from the combined assets. No forward-looking statement can be guaranteed. Numerous risks, uncertainties and other factors may cause actual results to differ materially from those expressed in any forward-looking statement.
FourPoint Energy, LLC
SOURCE FourPoint Energy, LLC