Private oil and gas company CP
Exploration (CPX) announced today that it has closed the sale of
certain Delaware Basin assets to Resolute
Energy Corporation (NYSE: REN) for $160 million. The assets include
approximately 2,200 net acres in the core of the southern Delaware
Basin, and approximately 2,400 net, undeveloped acres in the Alpine
High. The primary asset, located near the town of Orla, Texas in Reeves
County, was a drill-to-earn farm-out with a major independent and
included significant infrastructure, two recently completed horizontal
wells producing from the upper Wolfcamp, seven upper Wolfcamp horizontal
wells, and 320 surface acres that provide operational efficiencies for
the future development.
“We are excited about this asset sale to Resolute and believe it is a
valuable and advantageous deal for both parties,” said CPX President and
CEO Tom Powell. “We look forward to continuing to utilize our
acquisition and drilling expertise to roll out CP Exploration III, and
again concentrate in the Permian Basin, focused on drill-to-earn and
joint venture partnerships with major independents.”
In 2015, CPX closed on its farm-out agreement on the Orla asset and
drilled its first horizontal well, landing in the Upper Wolfcamp. The
well was completed in 2016 with 4,400 feet of gross perforated interval
and achieved a 24-hour IP rate of 3,436 million cubic feet per day
(mcfd), 708 barrels of oil per day (bopd) (1,281 barrels of oil
equivalent per day (boepd)). CPX then drilled and completed its second
Upper Wolfcamp horizontal well, also with 4,400 feet of gross perforated
interval. This well achieved a 24-hour IP rate of 3630 mcfd and 813 bopd
(1418 boepd).
Following the completion of the second well, CPX drilled and cased four
more nominal 5,000-foot lateral length wells, two 7,500-foot nominal
horizontal wells, and participated in the drilling and casing of a
10,000-foot nominal lateral length well. During these operations, CPX
acquired its Alpine High acreage in southwestern Reeves County as well
as other acreage positions adjacent to the Orla asset.
Founded in 2007, CPX is co-located in Dallas and Lafayette, LA. The
company is privately funded by management and private investors. Since
its inception, CPX has completed six divestitures; four in the Bakken,
one in the Permian Basin, and one in the Delaware Basin, along with
multiple small sales, for a four times return on investment.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170515006664/en/
Copyright Business Wire 2017
Source: Business Wire
(May 15, 2017 - 4:30 PM EDT)
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