Cimarex Expands Woodford Shale Position with $180MM Acquisition
Cimarex has announced the expansion of its Woodford Shale position in the Anadarko Basin of western Oklahoma. Cimarex has entered into an agreement with Chesapeake Energy Corporation to acquire 38,000 net acres for $180 million.
The acreage is located in Blaine and Canadian counties, with 88% held by production and an average net revenue interest of 84%. After completing this transaction Cimarex will have 88,000 net Anadarko-Woodford acres.
Cimarex has drilled or participated in a total of 18 Anadarko-Woodford Shale wells through the end of the third quarter of 2008. Eight additional wells are drilling, five of which are operated by Cimarex. Thirty-day average initial production rates on Cimarex's Anadarko-Woodford wells with 4,000 foot laterals have averaged 5.0 MMcf/d.
Cimarex intends to fund the acquisition with cash. As of September 30, 2008, Cimarex had over $200 million of cash and $500 million available under its undrawn bank-credit facility.