Canyon Creek Energy announces new drilling program in Arkoma STACK play
TULSA, Okla. -- Canyon Creek Energy – Arkoma (CCEA) announced that it has entered into a Joint Development Agreement (JDA) with Pivotal Petroleum Partners to jointly fund the development of wells on CCEA's acreage in Atoka, Coal, Hughes and Pittsburg counties, Oklahoma, targeting the stacked pay formations in the expanding Arkoma STACK play.
CCEA and Pivotal plan to drill 18 wells in 2018 targeting the Woodford shale and Mayes shale in various locations throughout the Arkoma basin of southeastern Oklahoma. Pivotal will fund 75% of CCEA's working interest in all wells covered by the JDA. Once Pivotal achieves a preferred return, the majority of the wellbore working interest and net revenue interest will revert back to CCEA. This new partnership will accelerate CCEA's drilling activity across the company's 100,000 gross acre operated leasehold position.
CCEA President & CEO Luke Essman commented, "We are excited to partner with Pivotal to continue delivering competitive investment returns within our Arkoma STACK acreage. Their investment signals the industry's renewed interest in developing the Arkoma's world class rock."
"We are extremely excited to have the opportunity to partner with CCEA to develop its Arkoma STACK leasehold position," said Billy DeArman, principal at Tailwater Capital. "The CCEA partnership allows Pivotal to deploy capital into wells with compelling rates of return alongside a highly respected operator in the basin."