US-based Midstates Petroleum has signed a deal with Panther Energy and its partners Red Willow Mid-Continent and LINN Energy to acquire producing, developed and undeveloped assets in the Anadarko Basin in Texas and Oklahoma for $620m.
The primary horizontal drilling targets include the Cleveland, Marmaton, Cottage Grove, and Tonkawa formations.
The acquisition will add about 36.4 million barrels of oil equivalent (MMBOE) of proved reserves of 45% oil and 21% natural gas liquids (NGLs) and 34% of it are proved developed producing.
The assets will increase the company’s net current daily production by about 8,000 barrels of oil equivalent (BOE) per day and increase drilling inventory with over 700 low-risk, repeatable horizontal drilling opportunities.
The deal will expand acreage position with nearly 140,000 net acres with multiple objectives, add approximately 280 gross producing wells, and provide over 100 MMBOE in internally estimated resource potential.
Midstates Petroleum chairman, chief executive officer and president John Crum said, "The acquisition we announced today greatly enhances our scope, scale and identified resource potential."