Chaparral Energy Inc., a pure-play operator focused on the STACK (Sooner Trend of the Anadarko Basin, mostly in Canadian and Kingfisher counties) play in Oklahoma, said it has entered into an agreement to purchase 7,000 contiguous net acres in the latter county for $60 million in cash.

Oklahoma City-based Chaparral added that it had also closed on a new $400 million credit facility on Dec. 21, with an initial borrowing base of $285 million. That figure represents a $60 million increase compared to its previous borrowing base.

The company said the acquired acreage lies within the core of the black-oil window of the STACK. Chaparral said the acreage is 100% held by production, and that the deal with a private seller will provide the company with an 87% working interest.

Once completed, the acquisition will increase Chaparral’s core acreage in Kingfisher by 28%, and will increase the company’s overall position in the STACK to approximately 117,000 net acres. The acquisition will also add more than 200 horizontal drilling locations targeting the Meramec and Osage formations.

“We are particularly excited about this acquisition due to its location adjacent to our existing operations in the sweet spot of this highly productive play,” said CEO Earl Reynolds. “Our understanding of the rock, extensive experience in the area and access to existing infrastructure will allow us to maximize the value of this core area.”

Chaparral, which reorganized and exited bankruptcy protection last March, pointed out that the deal was predicated on an “attractive purchase price of approximately $8,500 per acre, compared to other recent STACK transactions.” The company said it plans to use the aforementioned new credit facility to finance the acquisition, which is subject to customary conditions and is expected to close in January.

Last November, Chaparral closed on the sale of its North Burbank and Texas Panhandle enhanced oil recovery (EOR) assets to an undisclosed buyer for $170 million, completing its transition to becoming a pure-play STACK operator. The company said it used the proceeds from the EOR divestiture to fully repay the outstanding $149.2 million balance on its term loan, as well as pay down a portion of its outstanding credit facility borrowings.

When Chaparral exited Chapter 11, it had cash on hand and a reserve based lending facility with an initial borrowing base of $225 million. It also had an additional $150 million term loan. The company said that it anticipates that its outstanding borrowings under the new credit facility will total $127 million at the end of 2017.

“This bolt-on acquisition further enhances our outstanding STACK position and our increased borrowing base serves as a testament to the quality of our assets,” Reynolds said. “Given our exceptional position within the play, as well as our strong balance sheet, Chaparral is well positioned to continue to drive long-term growth and create value for our shareholders.”