Evolution Petroleum Corp. saw a strong uplift in production from its recently acquired SCOOP/STACK plays in Oklahoma. (Source: Shutterstock)
Evolution Petroleum Corp. saw a strong uplift in production from its recently acquired SCOOP/STACK plays in Oklahoma.
In January, Evolution entered into transactions with three sellers to acquire the Midcontinent leasehold for a reported $43.5 million. In a May 7 earnings release, Evolution said the company borrowed $42.5 million under its revolving credit facility to fund the acquisitions.
The interests are in the Anadarko Basin’s Blaine, Canadian, Carter, Custer, Dewey, Garvin, Grady, Kingfisher, McClain and Stephens counties.
As a result of the acquisitions, which closed in February, average production in the first quarter increased by 835 boe/d. Evolution said that, had the acquisition closed at the beginning of the second quarter, on a pro forma basis production on the assets would have averaged 1,550 boe/d.
The transactions also added about 300 gross undeveloped locations with an average working interest of approximately 3%. Of those locations, 21 DUCs were to be completed at the sellers’ expense.
Evolution also elected to participate in 15 wells, 13 of which were spudded by the end of the first quarter, according to its earnings release.
Additionally, 19 of the SCOOP/STACK DUCs were completed by the end of the quarter, with results “meeting or exceeding expectations for the wells for which data is available, maintaining pro forma field production for the quarter roughly flat to the production rate” as of the Nov. 1, 2023, effective date.
Kelly Loyd, Evolution president and CEO said the company has added scale, diversification and investment flexibility to its portfolio.
“The production for a portion of the quarter from our SCOOP/STACK acquisitions and the incremental production from 19 newly drilled SCOOP/STACK wells, as well as production from the initial three wells at Chaveroo [oilfield], were instrumental to our performance this quarter,” Loyd said. “Chaveroo and SCOOP/STACK not only bolstered our quarterly average production by more than 1,000 boe/d but were also key to the impressive 27% increase in quarter-over-quarter crude oil production.”
Loyd said the company’s ability to swiftly integrate the assets and capitalize on their continued development potential was a clear indication of Evolution's “agility and strategic execution.”
Recommended Reading
As Permian Targets Grow Scarce, 3Q M&A Drops to $12B—Enverus
2024-10-16 - Upstream M&A activity fell sharply in the third quarter as public consolidation slowed and Permian Basin targets dwindled, according to Enverus Intelligence Research.
Great Expectations Continue to Round Out a Big Year in A&D
2024-10-17 - At least $1.8 billion in A&D transactions have taken place already in 2024.
Diamondback Swaps Delaware Assets, Pays $238MM For TRP’s Midland Assets
2024-11-04 - After closing a $26 billion acquisition of Endeavor Energy Resources, Diamondback Energy is getting deeper in the Midland Basin through an asset swap with TRP Energy.
Report: ConocoPhillips Shopping Delaware Basin Assets for $1B Sale
2024-10-30 - ConocoPhillips has laid out a $2 billion divestiture campaign to reduce debt from a blockbuster acquisition of Marathon Oil.
Oxy CEO Sheds Light on Powder River Basin Sale to Anschutz
2024-11-14 - Occidental is selling non-core assets in the Lower 48 as it works to reduce debt from a $12 billion Permian Basin acquisition.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.