Canyon Creek Energy-Arkoma LLC (CCEA) has added an estimated 50,000 gross acres in Oklahoma within the liquids-rich window of the Arkoma Basin, aka the Arkoma Stack, after its acquisition of Quanah Energy LLC.
On Wednesday, the Tulsa-based company said the acquisition increases its operational control to more than 100,000 gross acres spread across 160 operated drilling units, providing nearly 1,300 horizontal drilling locations. The terms of the transaction were not disclosed.
CCEA CEO Luke Essman told NGI's Shale Daily that the acquired acreage is prospective for Mississippian-age plays stacked within the Arkoma Basin -- specifically the Mayes Shale and the Caney Shale -- as well as the Woodford Shale, a Devonian-age formation. The acquired acres are in Oklahoma's Atoka, Coal, Hughes and Pittsburg counties, where CCEA holds a highly contiguous position in the Arkoma, he said.
"We continue to realize exceptional drilling and completion results across our liquids-rich position in the Arkoma Stack play," Essman said. "We are particularly excited about this acquisition as it fits nicely with our existing acreage footprint and will allow for the efficient continued development of our resource."
CCEA last March formed a joint venture (JV) with an investor group led by Fort Worth-based Vortus Investment Advisors LLC. The JV is managed by an affiliate of Canyon Creek Energy Operating LLC. Last July, the partnership acquired more than 30,000 acres in the Arkoma Stack, mostly from Arkoma Leasing LLC.
For the Arkoma Basin, beauty has been in the eye of the beholder for the past year.
Linn Energy Inc. went on a selling spree before and after it emerged from Chapter 11 last February, but it retained its assets in the Arkoma and elsewhere. Meanwhile, Jones Energy Inc.sold its Arkoma properties last June, and Continental Resources Inc. last August divested more than 32,000 net acres and other assets in the region’s stacked reservoirs and the Arkoma for a combined $147.5 million.