Oklahoma-focused Chaparral Energy Inc. said Friday it is taking $170 million from an undisclosed buyer for the North Burbank and Texas Panhandle enhanced oil recovery (EOR) assets within the STACK, aka the Sooner Trend of the Anadarko Basin, mostly in Canadian and Kingfisher counties.

“The sale of these assets marks a major milestone in the transition of Chaparral to a premiere pure-play STACK operator,” said CEO Earl Reynolds. ”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.”

Proceeds from the sale, set to be completed in November, would allow the Oklahoma City-based independent to reduce debt and strengthen liquidity, Reynolds said. “The sale will also materially lower our overall total operating cost structure, which we view as critical in this volatile commodity price environment.”

Chaparral filed for bankruptcy protection in May 2016 and exited Chapter 11 proceedings earlier this year $1.2 billion in debt lighter. Last month it formed a drilling joint venture with Bayou City Energy to help fund development of its 110,000 STACK acres.

In addition to the cash consideration for the EOR assets, the latest agreement provides for contingent payments through December 2020 on a portion of the buyer’s unhedged production volumes, where the price received is higher than the buyer’s hedged prices. Chaparral also received an $11.9 million performance deposit.

The previously stated 2017 production guidance, including the EOR assets, was 8.3-8.7 million boe, which included an anticipated 45% year/year increase in STACK production, with output averaging 9,100-9,500 boe/d The EOR sale will take out a big chunk of expected output as estimated current production associated with the assets being sold is 5,700 boe/d.

Chaparral said it would provide more details about the transaction, year-end expectations and future development plans in its third quarter earnings call set for early November.