Midstates Petroleum to buy oil assets in the Anadarko Basin, US

US-based Midstates Petroleum has signed an agreement with Panther Energy and its partners, Red Willow Mid-Continent and LLC and LINN Energy Holdings, to acquire oil producing assets in the Anadarko Basin in Texas and Oklahoma, for $620m.

Cleveland, Marmaton, Cottage Grove and Tonkawa formations are the important drilling targets in the acquired properties.

The drilling targets are estimated to contain proved reserves of about 36.4m barrels of oil equivalent, of which 45% is oil and 21% is natural gas liquids (NGL), while 34% is proved developed and producing.

The acquired properties are expected to increase current daily production of Midstates by about 8,000 barrels of oil equivalent per day.

It will expand its acreage position with about 140,000 net acres, with 102,000 acreage in Texas and 38,000 acreage in Oklahoma.

The acquired acreage has about 280 gross producing wells, of which 80% are operated with an average 69% working interest and 55% net revenue interest.

Midstates Petroleum CEO and president John Crum said the acquisition will enhance the company’s scope, scale and identified resource potential.

"Adding this new third focus area provides Midstates the opportunity to build upon our operational strengths and leverage our presence in the Mid-Continent region that we established last year in Tulsa after completing our Mississippian Lime acquisition," added Crum.

"The Anadarko Basin is well understood by our team and the industry and will enhance Midstates’ overall investment profile."

Midstates Petroleum said it is planning to drill about 40-45 horizontal wells on the newly acquired acreage in 2013.

The latest transaction, which is subject to customary approval, is expected to complete in May 2013.

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Image: Cleveland, Marmaton, Cottage Grove, and Tonkawa formations are important drilling targets in the acquired properties. Photo: Courtesy of Alan Murray-Rust.