Reorganization Between Roan Holdings, LLC and Linn Energy, Inc. Completed to Form New Publicly Traded Pure-Play Company, Roan Resources, Inc.
Roan Resources, Inc. Provides Operational Update
Roan Resources, Inc. (“Roan” or the “Company”) today announced the
closing of the reorganization agreement entered into on September 17,
2018 between Roan Holdings, LLC and Linn Energy, Inc. As a result of the
transactions, Roan Resources, Inc. has consolidated 100% of the equity
interest of Roan Resources LLC., through its wholly owned subsidiaries.
The completion of this reorganization is a non-dilutive event to
shareholders of LNGG and the senior management team of Roan Resources
LLC will continue to operate the Company.
Effective tomorrow, Roan will trade on the OTCQB Market under the ticker
‘ROAN’, with approximately 152.5 million shares of Class A common stock
outstanding. The Company intends to uplist to the New York Stock
Exchange during the fourth quarter of 2018.
Additional details on the reorganization, along with supplemental
operational and financial data for Roan, can be found in the Form 8-K
filed on September 24, 2018 on the Company’s website at www.RoanResources.com.
Operational Update
Year-to-date, Roan has brought online 34 gross operated wells in the
Merge play that were selected, drilled and completed by Roan’s
operations teams. Of these wells, 24 wells have had at least 30 days of
production with an average 30-day peak production rate of 1,800 barrels
of oil equivalent per day (Boe/d) (38% oil, 69% total liquids)
normalized to a 10,000-foot lateral, with an average lateral length of
6,365-feet. The Company plans on providing results for the 10 wells that
have not reached 30 days of production in its next public operational
update.
As a result of Roan’s targeting efforts, production on its wells has
continued to improve and, in some cases, produced better 90-day rates
than 30-day rates. Roan’s acreage is uniquely located in the oil and
liquids-rich windows of the play, and with enhancements in targeting,
total oil and liquids production is also expected to continue to
improve. Given the de-risked nature of its acreage, the Company expects
well results to continue to get better as refined targeting and
completion techniques remain operational focal points.
A few highlight wells include the Doris 1-36-10-6-1XH and the
Spectacular Bid 18-11-6 2H. The Doris had a 30-day peak production rate
of 2,378 Boe/d (52% oil, 71% total liquids) from a 9,915-foot lateral
targeting the Mayes formation. The Spectacular Bid had a 30-day peak
production rate of 1,965 Boe/d (46% oil, 81% total liquids) from a
4,915-foot lateral targeting the Mayes formation.
“We are excited to share details on our operated well results we have
had this year,” said Tony Maranto, President and Chief Executive
Officer. “These results show the high oil cuts and repeatability across
our entire footprint in the Merge. With approximately two decades of
remaining gross operated locations in our inventory, we are only
beginning to see the value that can be derived from our acreage position
in the Merge.”
As previously mentioned, completion activity was limited in the first
half of the year but has increased with the start-up of Blue Mountain
Midstream’s Chisolm Trail cryogenic plant, and production is currently
trending at approximately 50,000 Boe/d. The Company is projecting to
bring approximately 30 additional gross operated wells to first sales
during the remainder of the third quarter and fourth quarter of 2018.
About Roan Resources
Roan is an independent oil and natural gas company headquartered in
Oklahoma City, OK focused on the development, exploration and
acquisition of unconventional oil and natural gas reserves in the Merge,
SCOOP and STACK plays of the Anadarko Basin in Oklahoma. For more
information, please visit www.RoanResources.com.
Forward-Looking Statements
Statements made in this press release that are not historical facts
are “forward-looking statements.” These forward-looking statements are
based on certain assumptions and expectations made by the Company, which
reflect management’s experience, estimates and perception of historical
trends, current conditions and anticipated future developments. Such
statements are subject to a number of assumptions, risks and
uncertainties, many of which are beyond the control of the Company,
which may cause actual results to differ materially from those implied
or anticipated in the forward-looking statements. Any forward-looking
statement speaks only as of the date on which it is made, and, except as
required by law, the Company does not undertake any obligation to update
or revise any forward-looking statement, whether as a result of new
information, future events or otherwise. When considering these
forward-looking statements, you should keep in mind the risk factors and
other cautionary statements found in the Company’s filings with the
Securities and Exchange Commission, including its Current Report on Form
8-K, filed September 24, 2018.
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