South Korea energy entity acquires STACK shale assets

By Luke Geiver | April 02, 2018

An affiliate of SK Group, the second largest business group in South Korea, is once again investing into North American shale. SK E&P America Inc., the subsidiary of SK Group, has entered into an agreement to acquire the interests of Longfellow Nemaha LLC, a private oil and gas exploration and production company that holds assets in Oklahoma.

Through the agreement, which is expected to be complete for an undisclosed amount by mid-2018, SK E&P America will gain assets in the STACK within the Oklahoma counties of Kingfisher and Garfield.

“SK initially invested in the growing U.S. oil and gas upstream market in 2014, and through this platform we continue to build a balanced portfolio of conventional and unconventional assets,” said Taewon Kim, president of SK E&P America. “This transaction leverages our operational expertise in the region and represents a significant step towards realizing SK’s vision of being a top-tier operator in the U.S. lower 48 Mid-Continent regions,” and he said, “potentially beyond.”

In 2014, SK acquired assets in both Oklahoma and Texas.

Longfellow Nemaha’s Kingfisher and Garfield assets include 81,000 gross acres with more than 60,000 acres that Longfellow holds a 75 percent working interest. To date, the company has drilled 104 horizontal wells, 60 drilling pads that are roughly five acres each, 72 miles of 10-inch saltwater disposal pipeline and 4 SWD wells.

From 2012 to 2015, the company drilled 86 wells. In 2017, Longfellow drilled 23 total wells. In the same time span, the fracture treatment has evolved. It’s Gen1 wells included 17 frack stages spaced at 237 feet with 39 barrels of fluid per foot placed to move 614 pounds of proppant per foot. Today, the company is placing 31 stages at 141 feet between each stage with 68 b/ft of fluid to move more than 1,700 lb/ft of proppant.