LINN, Citizen merge to form major SCOOP/STACK pure play E&P

By Luke Geiver | July 11, 2017

The SCOOP/STACK shale play of Oklahoma has brought two exploration and production firms together. In a consolidation effort that includes 70,000 net acres from each company, LINN Energy Inc. and Citizen Energy II has combined to form a single entity focused on the SCOOP/STACK. Roan Resources LLC, the name of the new company formed through the merger, will now have a 140,000 acre position spread through the Oklahoma counties of Canadian, Carter, Cleveland, Garvin, Grady, Kingfisher, McClain and Stephens. Through the merger, Roan will have no new debt and it will create a new revolving credit facility based on the sum of its new asset base.

According to Roan, this merger is the first of its kind in the SCOOP/STACK. Between the two entities, there are five drilling rigs running. Well economics of already established wells are equivalent to the best in the Oklahoma play and to those seen in the Permian, according to the company.

“The combination of our assets, experience and talented teams creates a unique, premier pure play company in one of the most prolific producing regions in the country. Roan is well positioned to grow production, reserves and value for many years to come,” said LINN and Citizen in a joint statement.

The SCOOP/STACK play competes with the very best unconventional opportunities in the country, the team added.

Both entities will continue operating in other areas and assets, but, LINN and Citizen will create a board with four members from each company along with a jointly-selected CEO.

The deal creates an inventory of future drilling locations above 1,500. And, by creating a more contiguous acreage position, Roan will be able to take advantage of longer laterals.