Texas, Oklahoma companies announce acquisitions, acreage sales

By Patrick C. Miller | March 01, 2017

Companies in Texas and Oklahoma recently announced the acquisition of new acreage in the Permian and Eagle Ford basins and the sale of acreage in the STACK formation.

Camber Energy, Houston, an independent oil and gas exploration and production company with operations in Texas and Oklahoma, has formed a new subsidiary—Camber Permian II LLC (CPII). This subsidiary has entered into a definitive purchase and sale agreement with private sellers to acquire oil and gas leases covering approximately 15,500 gross acres in the Permian Basin Arrowhead Project for $11.03 million.

The Arrowhead Project covers a contiguous block of acreage across the Yoakum and Cochran County line of the Permian Basin and includes a completed horizontal San Andres well and a salt-water disposal well, both currently shut-in.  CPII will put the San Andres well back into production once the salt-water disposal well is placed into service.  The transaction is targeted to close on or before March 30.

"This acquisition is consistent with our objectives to significantly increase the company's presence in the rapidly emerging horizontal San Andres play of the Permian Basin,” said Anthony Schnur, Camber Energy CEO. “Geographically, the Arrowhead Project is entirely separate from our other San Andres acreage position, and it expands and diversifies our exposure to this new play."

WildHorse Resource Development Corp. (WRD), an independent E&P company, announced it has signed purchase and sale agreements to acquire producing and non-producing assets from multiple sellers in Burleson County, Texas, for approximately $15.6 million. One transaction has closed and the other transactions are expected to close in April.

The newly acquired assets consist of 10,535 net acres, seven operated wells and nine non-operated producing wells with a combined production of approximately 1,200 gross barrels of oil equivalent per day along with significant undeveloped leasehold. The properties are immediately contiguous and complementary to WRD’s existing east Texas Eagle Ford properties and will increase its working interest in over 188 gross locations in the Burleson Main and Burleson North areas.

Jay Graham, WRD chairman and CEO, said. “With an implied acquisition cost of approximately $812 per acre, this transaction is consistent with our strategy of not only expanding our industry-leading position in East Texas, but also, expanding our acreage at an attractive value. Entry points like this help us achieve what we think are some of the best full cycle economics in any oil play in the country.”

IOG STACK Opportunities LLC, an affiliate of Dallas-based IOG Capital LP, announced the sale of its acreage and production located in Woodward County, Oklahoma, to a publicly traded exploration and production company. IOG STACK recently acquired the position in June 2016 as part of a joint development program with Red Mountain Energy LLC of Oklahoma City.

“This represents the first exit for IOG’s portfolio, and demonstrates the value creation of IOG’s joint development structure for both our operator partners and our investors,” said Marc Rowland, IOG founder and senior managing director.