After emerging from Chapter 11 proceedings $1.2 billion in debt lighter, Midcontinent-focused Chaparral Energy Inc. is budgeting $135-$155 million in 2017 to develop its position in Oklahoma’s Sooner Trend of the Anadarko Basin, mostly in Canadian and Kingfisher counties (aka, the STACK).

The Oklahoma City-based independent said during a recent year-end 2016 presentation that the company’s 24,400 boe/d total net production in 2016 included 35% year/year growth in the STACK, where lease operating expenses (LOE) totaled $3.77/boe and where Chaparral focused most of its attention during the year.

As part of a $150 million capital program in 2016, Chaparral completed 16 wells in the STACK and participated in another 36 gross non-operated wells. The operated wells were drilled in the Meramec (11), Oswego (2), Woodford (1) and Osage (2) formations. Recent drilling and completion costs in the Meramec formation are averaging $3.3 million per well, Chaparral said.

With its 2017 capital budget, the company is guiding for total net production of 8.2-8.6 million boe in 2017 as it continues to focus spending in the STACK.

“This past year has been a transformative one for Chaparral,” CEO Earl Reynolds said. “Our recent emergence from Chapter 11 has provided Chaparal with an extremely healthy balance sheet and the security necessary to continue to deliver excellent performance as we develop our approximately 100,000 net acre position in the STACK.

“…Chaparral set a company record for lowest-ever LOE/boe cost…despite the challenges presented by our restructuring and the continued low-price environment.”

Chaparral, which filed for bankruptcy protection last year citing depressed commodity prices, reported revenues of $252 million in 2016, down from $324 million in 2015. Total net production also fell by 13% year/year in 2016. Chaparral attributed the declines to a decrease in capital spending during its restructuring, along with an 11% decline in average commodity prices during the year.

Chaparral reported a net loss of $416 million in 2016.

“Our capital structure has been significantly improved with our emergence and corresponding elimination of approximately $1.2 billion of previous senior note debt and associated interest payments,” CFO Joe Evans said. “In addition, our new credit facility is comprised of a borrowing base and term loan. This provides us significant liquidity and more financial flexibility moving forward.”