Chalker Energy

Chalker Energy Partners III LLC has contracted Raymond James & Associates Inc. to assist with the sale of its interest in 33,500 gross acres (24,800 net acres) in the oil trend in the northeastern corner of the Texas panhandle.

The acreage is located in the Cleveland and Tonkawa Sand plays in Lipscomb, Hemphill and Ochiltree counties, Texas and includes twenty four producing wells, 16 of which are operated and five non-operated in the Cleveland Sands. In the Tonkawa Sands, the properties include one operated and two non operated wells.

As of late August, gross production from the wells reached 4,787 barrels of oil equivalent (BOE) per day and net production was 3,341 BOE per day, with 71% of that production in liquids.

The area shows growth potential, with 300 low-risk horizontal Cleveland and Tonakawa locations. Chalker has an active rig program, with nine more wells scheduled to be drilled and completed by the end of 2012.

The effective date of the transaction is Sept. 2, 2012; final offers are due in late October 2012. For additional information, please contact Christopher J. Simon, managing director, head of asset acquisitions & divestitures at Raymond James Energy Investment Banking, 713-278-5206.