Peregrine Acquires Over 10,000 Net Acres In Anadarko Basin

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Description

Acquired operated and non-operated assets in Anadarko Basin with 2,650 BOE/d of production.

Peregrine Petroleum completed a significant acquisition of operated and non-operated assets in Oklahoma's Anadarko Basin with Primary Natural Resources III LLC on Dec. 19.

Dallas-based Peregrine is acquiring more than 10,000 net acres in Ellis and Roger Mills counties in western Oklahoma with production from the Cleveland, Tonkawa and Atoka formations.

At closing, Peregrine assumed operatorship in 35 wells and non-operated interests in 31 wells. Currently, four operated and two non-operated wells are awaiting completion. Current net production (93% operated) is estimated to exceed 2,650 barrels of oil equivalent daily (BOE/d), with oil and natural gas liquids representing more than 70% of production.

Peregrine currently operates one horizontal rig and plans to drill more than 48 operated locations in the Lower Cleveland and Tonkawa formations. An additional 59 locations exist in the non-operated acreage. While these assets are largely held by production, Peregrine plans to drill 18 new wells in the Anadarko Basin in 2014 and accelerate drilling in 2015, primarily in the Lower Cleveland formation.

"Today's announcement represents an important milestone for Peregrine by adding another core area of operations to our portfolio," Michael B. Wisenbaker Jr., Peregrine's president, said in the release. "This acquisition provides a significant operated position in a liquids-rich multi-horizon basin. The economics associated with applying unconventional technology to the Lower Cleveland are impressive and continue to improve with drilling and completion refinements. We anticipate further cost reductions and improved well performance as we ramp up our drilling operations. Additional drilling locations in the form of down spacing and additional horizons also help make this acquisition a great long-term asset for Peregrine, and we are excited about our prospects going forward."