Laredo Petroleum Inc.

Transaction Type
Sellers
Marketers
Post Date
Close Date
Estimated Price
0MM
Description

Laredo Petroleum Inc. (NYSE: LPI) has hired Wells Fargo Securities (NYSE: WFC) to market its interest in upstream and midstream assets in the Anadarko Basin of western Oklahoma and the Texas Panhandle.

Laredo’s upstream assets produce a net 58.5 million cubic feet equivalent (MMcfe) per day from about 104,000 net acres, 85% of which is held by production.

Laredo has a large contiguous operated acreage position concentrated in Hemphill County, Texas and Roger Mills County, Oklahoma. It has about 53,000 gross (37,000 net) acres, 77% of which is held by production. Laredo’s net production is about 46 MMcfe from 191 gross operated wells, including 27 horizontal wells.

Laredo Petroleum is also selling producing assets in Hansford County Texas and Caddo and Grady counties, Oklahoma. Net production from this portion of the package is 12.5 MMcfe per day from 101,000 gross (67,000 net) acres, 91% of which is held by production.

In addition to its upstream operations, Laredo Petroleum is also selling about 136 miles of large-diameter gathering lines in Twin Chanels and Black Kettle, which will have a capacity of 90 MMcf per day by the end of calendar year 2013.

The gathering lines will provide the buyer with immediate access to multiple markets upon completion of wells in the region. The gathering lines have connections with interstate NGL pipelines run by OneOk Inc. (NYSE: OKE) and Enterprise Products Partners LP (NYSE: EPD), giving the buyers access to hubs in Conway, Kansas and Mont Belvieu, Texas.

Physical data rooms will be open in early April with bids due by the end of April. For additional information, contact Dane Isenhower, managing director at Wells Fargo Securities, at 713-346-2721 or dane.isenhower@wellsfargo.com.