See all articles

Chaparral in $170m US acreage sale

US operator sells assets in Oklahoma and Texas Panhandle to become pure Stack-focused player

Oklahoma City-based operator Chaparral Energy has offloaded assets to a mystery buyer in a deal worth $170 million.

The company, which exited Chapter 11 bankruptcy protection earlier this year, has sold its enhanced oil recovery assets in North Burbank and Texas Panhandle.

The purchase price includes cash "plus certain contingent payments," Chaparral said, without providing a breakdown.

Chief executive Earl Reynolds said: "The sale of these assets marks a major milestone in the transition of Chaparral to a premiere pure-play Stack operator.

"Our teams will now be able to further focus our capital, activity and operational knowledge exclusively on accelerating development of our highly economic Stack inventory.

"In addition, the proceeds from this transaction will allow us to further reduce our debt, increase liquidity and strengthen our already strong balance sheet.

"The sale will also materially lower our overall total operating cost structure, which we view as critical in this volatile commodity price environment."