STACKED cash
Chaparral Energy Inc. will sell assets in north Oklahoma and the Texas Panhandle for $170 million in cash.
Chaparral Energy Inc. continues to focus its operations on Oklahoma’s STACK play, announcing Friday that it will sell assets in north Oklahoma and the Texas Panhandle for $170 million in cash.
The sale, to an undisclosed buyer, also includes contingent payments to Chaparral, the Oklahoma City-based energy company said.
“The sale of these assets marks a major milestone in the transition of Chaparral to a premiere pureplay STACK operator,” CEO Earl Reynolds said in a statement issued by the company. “Our teams will now be able to further focus our capital, activity and operational knowledge exclusively on accelerating development of our highly economic STACK inventory.”
Reynolds said the sale proceeds would pay down debt, boost Chaparral’s liquidity “and strengthen our already strong balance sheet.”
“The sale will also materially lower our overall total operating cost structure, which we view as critical in this volatile commodity price environment.” he said.
The deal involves enhanced oil recovery assets in the North Burbank play in north Oklahoma and south Kansas and similar assets in the Texas Panhandle, the company said.
The deal is expected to close next month, Chaparral said.
The company said it will provide more details about the deal, its yearend expectations and future development plans on its third-quarter earnings call early next month.