The terms of the deal were not provided and are subject to a non-disclosure agreement until such time as a definitive agreement is signed.
The leases cover acreage in Wilkinson and Amite Counties in Mississippi and in East Feliciana and St. Helena Parishes in Louisiana.
The acquisition essentially doubles Chaparral's footprint, giving the company the largest position in the Panhandle Marmaton play.
The company will quadruple spending in the TMS.
The company has aggressively been working on its Kansas wells during the past 30 days.
The closing price after purchase price adjustments was $23.7 million, which was funded with available cash.
Analyst questions the wisdom of spending capital outside the Eagle Ford.
Total consideration for the transactions will be approximately $78 million consisting of $70 million of cash and 342,760 shares of common stock (valued at approximately $8.2 million based on the closing price per share as of August 7).
Major oil producers in the Peace River region, such as Shell, Husky, and Baytex, are currently producing oil by cold production methods on their properties.
Sun has entered into a binding agreement with Petro-Hunt LLC to jointly explore and develop an Area of Mutual Interest (AMI) consisting of approximately 7,832 acres in northern Leon County, Texas.