FourPoint Energy to acquire Western Anadarko Basin oil and gas assets in US for $385m

FourPoint Energy has signed an agreement to acquire all of remaining Western Anadarko Basin oil and gas assets from Chesapeake Energy in the US for $385m.

Last July, the company initially announced the acquisition of oil and gas assets from Chesapeake subsidiaries, namely Chesapeake Exploration and CHK Cleveland Tonkawa, for $840m.

The latest assets to be acquired include an interest in nearly 3,500 producing wells covering about 473,000 net acres, within 15 counties in Western Oklahoma and the Texas Panhandle.

The wells are primarily located in the Granite Wash, Missourian Wash, Upper and Lower Cleveland and Tonkawa formations.

FourPoint Energy president and CEO George Solich said: "The properties to be acquired create visibility into decades of development growth and closely overlap FourPoint’s current acreage footprint.

"By optimising our position, we enhance optionality in drilling inventory, allowing us to target the best upside locations that achieve the most economic rates of return."

FourPoint said that the production mix is about 67% of natural gas and 33% of oil and natural gas liquids.

The acquisition is subject to customary conditions and is expected to close this year.

FourPoint executive vice-president and COO Kamil Tazi said: "As we integrate these assets within our organisation, FourPoint will continue to develop operating efficiencies and capitalise 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."

The acquisition will enable FourPoint expand its footprint to 884,000 net acres with net production estimated at 435Mmcfed from more than 7,600 gross wells.