Current CHPE Stock Info

Chaparral Energy, Inc. (ticker: CHPE) announced today that it has entered into a definitive purchase agreement to acquire acreage in Kingfisher County, Oklahoma, from a private seller for $60 million in cash, subject to customary post-closing adjustments.

Highlights

  • Acquiring 7,000 contiguous net acres in the core of the black-oil window of the STACK play in Kingfisher County
    • The acreage is 100 percent held by production and will provide Chaparral with an 87 percent working interest
    • Attractive purchase price of approximately $8,500 per acre
  • Increasing Chaparral’s core acreage in Kingfisher County by 28 percent, which increases the company’s total STACK play acreage to approximately 117,000 net acres
  • Adding more than 200 horizontal drilling locations in the Meramec and Osage formations
  • Vertical Mississippian well tests without modern stimulation techniques have displayed good IP rates with average IP24 >200 BOPD
Chaparral Energy’s $60 Million Bolt-on STACK Acquisition

Chaparral Energy STACK Acquisition Map

“We are particularly excited about this acquisition due to its location adjacent to our existing operations in the sweet spot of this highly productive play,” said Chaparral CEO Earl Reynolds. “Our understanding of the rock, extensive experience in the area and access to existing infrastructure will allow us to maximize the value of this core area.”

In addition to the acquisition, the company also closed on a new $400 million credit facility on December 21, 2017, with an initial borrowing base of $285 million, which represents a $60 million increase compared to its previous borrowing base. Chaparral plans to use the credit facility to finance the STACK acquisition, which is expected to close in January 2018.

As announced in late November, the company recently completed the sale of its EOR assets and used those proceeds to fully repay the outstanding $149.2 million balance on its term loan, as well as pay down a portion of its outstanding credit facility borrowings. Chaparral anticipates its outstanding borrowings under the new credit facility at the end of 2017 will be $127 million.

Chaparral Energy did not release estimated reserves or average net production values at this time.


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